Government reveals its plans for the 2021-22 Federal Budget
The Government has released the 2021-22 Federal Budget with the goal of securing Australia’s recovery from the COVID-19 pandemic.
Since the pandemic, $291 billion has been provided indirect economic support to keep businesses running and Australians in jobs. This year, the Government plans to create more jobs, rebuild the economy and prepare the country for the future.
One of the plans under the Budget is to provide additional tax cuts to more than 10 million low-and middle-income earners, allowing them to benefit by up to $1,080 for individuals or $2,160 for couples.
The additional tax cuts will allow individuals more funding for their local businesses. The Government will also extend temporary full expensing and the loss carry-back measure for another year to support further job creation.
This will allow more than 99 per cent of businesses to deduct the full cost of eligible depreciable assets of any value in the year they are installed until 30 June 2023. It will also allow companies with a turnover of up to $5 billion to offset their losses against previously taxed profits to generate a refund.
Meanwhile, an additional $1.7 billion investment in child care is added under the Budget to cut the cost of living for Australian families and boost workforce participation.
The Government is also doubling its commitment to the JobTrainer Fund. The plan will support a further 163,000 new training places to upskill job seekers and meet skills shortages.
The Budget will fund more than 170,000 new apprenticeships and traineeships, 5,000 higher education short courses and 2,700 places in indigenous girls’ academies to help them finish school and get a job.
Digital skills training and STEM scholarships and programs will also be accelerated under the plan.
Infrastructure will also be prioritised under the 2021-22 Federal Budget. A record 10‑ year $110 billion infrastructure pipeline is currently underway, which is already supporting 100,000 jobs across the country.
A further $15.2 billion will be committed to additional infrastructure projects, supporting 30,000 jobs. These projects include the following:
- $2.6 billion for the North‑South Corridor in South Australia
- $2 billion for the Great Western Highway in New South Wales
- $2 billion initial investment for a new Melbourne Intermodal Terminal in Victoria
- $400 million for Bruce Highway Additional Funding in Queensland
- $379 million for METRONET in Western Australia
- $150 million for highway upgrades in the Northern Territory
- $132.5 million for Canberra Light Rail – Stage 2A in the Australian Capital Territory and
- $113.4 million for the Midland Highway Upgrades in Tasmania.
There will also be a $1 billion funding for road safety upgrades and $1 billion funding for community infrastructure.
In the 2021‑22 Federal Budget, the Government goes further with the country’s manufacturing sector with a new ‘patent box’.
Under the patent box, income earned from new patents that have been developed in Australia will be taxed at a concessional rate of 17 per cent. While the patent box will apply to the medical and biotech sectors, there are consultations on expanding it to the clean energy sector.
With the additional $87.7 million funding for the Agri‑Business Expansion Initiative, small businesses and farmers can now have the help they need to expand and diversify their export markets.
The Government also has plans to deliver more affordable and reliable energy under the Budget. This includes unlocking vast gas reserves in the country, investing in hydrogen‑ready gas plants, and aiding local refineries to continue their operations and shore up the nation’s fuel security.
With the comprehensive economic plan listed within the 2021-22 Federal Budget, the Government intends to secure and improve Australia’s recovery.