Overview of the Australian Federal Budget 2021/22



Here are some important details of the 2021/22 budget and the impact of various measures on Australians:

Federal budget at a glance

Main forecasts
* $ 106.6 billion in budget deficit in 2021/22 (5% of GDP)
* Economic growth to rise 4.25% in 2021/22
* Average unemployment rate of 5%
* Average 1.75% inflation
* 1.5% wage increase
* Net debt increased to $ 729 billion

Taxation
* Additional $ 7.8 billion tax cut for low- and middle-income earners, $ 1080 for individuals, $ 2160 for double-income couples
* The $ 25.1 billion personal tax cut announced will flow to households in 2021/22.

business
* Temporary full spending extension for one year until June 30, 2023.
* Temporary loss carryback has been extended to include the 2022/23 income year
* $ 1.2 billion aviation and tourism sector package
* $ 1.5 billion latest manufacturing strategy

housing
* Extension of Home Builder construction start period
* An additional 10,000 locations under the new Home Guarantee for first home buyers
* Starting July 1, 10,000 guarantees will be available over a four-year period for single parents to build new homes or buy existing homes with a deposit of only 2%.
* Starting July 1, 2022, the maximum amount of voluntary donations for the First Home Super Saver Scheme will increase from $ 30,000 to $ 50,000.

infrastructure
* Additional $ 15.2 billion in infrastructure spending over 10 years
education
* $ 2 billion in 4 years for early childhood education, supporting at least 15 hours of access per week for all children in the previous year of school
* 5000 additional short-term course locations at non-university higher education institutions

Bush
* $ 3.5 billion National Water Grid Fund
* $ 414.5 million biosecurity package
* $ 250 million available from Building Better Regions Fund

Woman
* $ 1.1 billion to support victims of violence, including financial and legal assistance and emergency accommodation
* Additional $ 1.7 billion for childcare, increased subsidies for second and subsequent children

health
* $ 2.3 billion to improve and expand mental health care and suicide prevention
* Increased orders to 170 million with an additional $ 1.9 billion investment in vaccine deployment

Elderly care
* $ 17.7 billion to fund elderly care reforms, including new legislation and financing models
* 80,000 additional home care packages

Indigenous people
* $ 243.6 million to improve access to skills and job programs and remote government services

Veterans
* Additional $ 460.4 million for veterans, including the Royal Commission on Defense and Veterans Suicide

Disability
* Additional $ 13.2 billion for 4-year national disability insurance scheme

retiree
* With the extension of the pension loan system, one person can receive up to $ 12,385 per year, or a couple can receive up to $ 18,670 in one lump sum payment.
* The minimum age for downsizer old-age pension contributions has been reduced from 65 to 60, allowing an after-tax contribution of $ 300,000 per person when selling a family home.

Paul Osborn

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