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The 2021-22 Australian Federal Government Budget brings significant further stimulus

The Budget brings significant stimulus promoting recovery of an economy devastated by both COVID19 and the global COVID-19 pandemic.

The Mazars 20/21 Federal Budget Brief summarises the key Budget tax and superannuation stimulus announcements that we expect will most affect Mazars individual and business clients. The dates in square brackets indicate the proposed start date for the announced change.

While the 2020-21 year Budget deficit is now expected to be some $52 Billion lower than previous forecasts thanks to a fast improving economy and vastly improved mineral prices, rather than bank the savings, the Government has opted to invest these in further stimulating the economy.  Indeed, the Government has changed its fiscal policy from prudent conservatism to spending the country’s way out of economic trouble.  

The Government is now forecasting a deficit of $106 Billion for the 2021-22 budget period and reducing deficits continue over the forward estimates period as the economy recovers.

The different sections addressed it the video are the following:  

• Tax changes impacting individuals
• Budget measures for businesses
• Superannuation insights
• Other measures & tax planning considerations