Here we are again with the 2021-22 budget being handed down by Treasurer Josh Frydenberg overnight. It feels like an eternity ago that the last budget was being handed down during the midst of the COVID-19 crisis, and this budget is a reflection and continuation of how Australia has fared during its road to economic recovery.
Overall, the anticipated deficits have not materialised, mainly as a result of higher than anticipated employment levels coupled with the strong iron ore prices of the past year. This has resulted in a stronger tax base and has provided the Government an opportunity to prepare a largely politically-focused budget as it heads towards the next Federal Election.
From a tax perspective, there were no radical or comprehensive changes. Rather, the government has targeted the continuation and extension of recently announced or expiring concessions and incentives. The main measures included:
• Extension of the temporary full expensing measures;
• Extension of the tax loss carry-back rules;
• Extension of the LMITO (low & middle-income tax offset);
• Removal of the $450 minimum monthly wage in respect of the superannuation guarantee; and
• Simplification of the Employee Share Scheme rules.
While our economy has fared significantly better than the global average, we are still coming to grips with the new norm and COVID will continue to have significant effects in the short-term and will no doubt shape Australia in the years to come.
Please see the following link for the CAANZ highlights and key measures from the budget. As always, if you have any queries in how the budget will impact you and your business, please reach out to your WMS team. Keep an eye out for our detailed updates once more legislative details have been released in the weeks to come.
Should you have any questions, please do not hesitate to contact our office on (07) 5556 3300 or info@wmssolutions.com.au
DISCLAIMER: This article is intended to provide a general summary only and should not be relied on as a substitute for professional advice.
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