2021 Federal Budget Summary

Aged care, women and mental health services are the focus of new spending in the Federal Government budget in 2021.

This budget builds on the significant gains made to create jobs, get people and businesses back to work, rebuild confidence and fire up economic growth.

Highlights for businesses

  • 12-month extension of the temporary expensing measures (ie asset write-off until 30 June 2023) and loss carry back for small and medium sized businesses.
  • Helping around 250,000 families with childcare subsidies and addressing barriers to female participation in the workforce.
  • $1.2 billion digital economy package to drive innovation and investment, incentivise business to upgrade their technology and let workers get the skills they need by learning on the job.
  • More than $1 billion in low-emissions technologies, including hydrogen hubs in regional Australia, to help reduce our emissions, create new industries and new jobs.
  • $15 billion of new infrastructure projects across Australia that will support over 30,000 jobs.
  • $1.2 billion package for the aviation and tourism sectors.
  • $255 million in tax relief for small brewers and distillers by tripling the excise refund cap from $100,000 to $350,000 per year from 1 July 2021.
  • $4.7 billion skills package including increasing the number of apprentices, providing additional short courses through the JobTrainer Fund and focusing on digital skills.
  • $550 million package to attract foreign professionals and businesses helping overseas talent grow domestic businesses to take on more local employees.
  • $135 million deregulation package including RegTech assistance to small business and adoption of automatic mutual recognition of occupational licences.
  • Reducing the tax rate for small and medium companies to 25% from 1 July 2021.
  • A patent box to help commercialise Australia‚Äôs great ideas and innovations applying first to the medical and biotech sectors.
  • $1.5 billion towards the modern manufacturing strategy delivery.

Highlights for regions

  • A new national agency to support local communities after large-scale natural disasters. The Agency will also provide advice to government on mitigation strategies for climate change and large-scale natural disasters.
  • $250 million for the Building Better Regions Fund which gives grants to infrastructure and community projects.
  • $190 million package to develop the Northern Australian economy through co-investment grants for businesses to diversify and expand, and digital connectivity.
  • $40 million to subsidise the cost of cyclone risk mitigation works for eligible strata title properties in North Queensland.
  • AgMove where Australians can claim up to $2,000 in relocation assistance (or $650 for temporary visa holders) when they complete just 40 hours of agricultural work over two weeks.
  • This reduces the existing initial eligibility period from six weeks to two.
  • The government is investing carefully in aged care and mental health, while laying the groundwork for growth by investing in skills, modern manufacturing and new infrastructure

Thank you for subscribing.