FEDERAL BUDGET 2021: What you need to know

Frydenberg’s hands are sweating, our hearts are pumping, our laptops are charged and our eyes are peeled to screens because it’s…. CHRISTMAS FEDERAL BUDGET TIME. 

We’ve summarised the juicy bits so that rather than listening to the dulcet tones of the Liberal party preaching they’re committed to growth, you can have a scan of this instead.

Jobs, jobs and more JOBS!

Thankfully, the projected unemployment crisis we expected to see unfold this year didn’t happen. However as C-19 continues to mess with economies left, right and centre, it’s still a hard time to be in business. 

Start ups are catching a break with a $550 billion package removing red tape that’ll mean international talent is easier to attract and employ.

JobTrainer is also set to be extended for another year – read more about that here.

Childcare

Families with two or more children can expect childcare fees to drop with a $1.7 billion package, increasing the current subsidy to a maximum of 95% for the second child. The subsidy cap for high income earners will also be removed.

These changes won’t come into effect until mid 2022. 

Women’s health

Cervical and breast cancer, endometriosis and reproductive health were a big focus with a $345 million package announced. This budget will be spread across research, better testing and screening protocols and mental health initiatives.

Mental health

$2.3 billion will go to mental health and suicide prevention including more Headspace centres to support young Australians, expanding the model to those over 25 too. People with eating disorders and those who’ve been admitted into psych wards among others will have greater access to mental health care workers through Medicare. Suicide prevention programs also play a key part in this funding.

Superannuation

On average, women retire with less superannuation in their fund than men. Work tests are being scrapped, meaning people can contribute more into super without tax implications, and at a younger age. This will help around 200k women boost their super prior to retirement. 

Some of the biggest news in this budget (and a key reason for the above super inequality) is scrapping the $450 minimum threshold that then forces an employer to pay super. Nomatter how much you earn, you are now entitled to super payments – no minimum wage exists for this benefit.

Key business perks

• The instant asset write off is being extended for another year. We wrote about this over here
• If you’re in gaming, brewing, or are a biotech or medical start up, you’ve also got funding coming your way. Read the full break down over here
• The tourism industry will continue to take a huge hit with borders not set to open ‘til mid 2022, however additional support for these businesses were not part of the budget announcement

(Another) Once-off tax relief 

A lot of you will remember that $1080 freebie that landed in your pockets last year. The once-off has turned into a twice-off. Those earning less than $126k can expect the same amount to appear in their returns this year. 

Here’s the breakdown according to wage bracket (sourced from the ABC)

Aged Care

The desperately needed overhaul of the aged care system looks set to start rolling with $10 billion coming their way over the next four years. Let’s see how many of those Royal Commission recommendations get implemented…

Property buying & selling

Single Home Buyers

Single parents who meet the criteria (household income of less than $125k) will be eligible to purchase a home with just a 2 percent deposit. The government estimates that 80% of the beneficiaries of this scheme will be mothers and it’ll help up to 10,000 parents over the next four years.

Retirees

Selling the family home and dumping cash into super is a great retirement tactic that’s just been made easier, with couples now able to contribute 600k and singles 300k at 60, rather than 65. Eligibility for this scheme has also loosened with the work test going out the door.

Unsure how this announcement will affect you and your business? Get in touch, we *love* chatting about this stuff!