FY 21/22 Federal Budget – Key Takeaways

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By Chris Smith

Federal Budget – Key Takeaways

On 11 May, the Government released the Federal Budget for 2021/22.

Continuing the theme from the Budget in October 2020, this budget was designed to stimulate the economy and create new jobs.

While generally a positive budget for privately owned businesses, on the whole there is not much in the way of key insights that need to be urgently implemented.

Summary

  • 1-year extension to the Loss Carry-Back provisions
  • 1-year extension to the Immediate write-off of depreciable assets
  • No mention of Super Guarantee Charge (SGC) rate changes – therefore 10% SGC applies from 1 July 2021
  • “Work Test” changes for Super Contributions for members who are 67 to 74 years old for Salary Sacrifice and Non-Concessional Contributions (Concessional Contributions are excluded from this update)
  • Removal of $450 monthly salary for Super Guarantee Contributions (may apply from 1 July 2021 depending on when legislation receives royal assent)
  • New rules relating to ATO debt recovery for small businesses
  • Changes to timing of the taxing point for Employee Share Schemes
  • Updates to residency tests for Companies and Individuals
  • No further update was provided regarding Div 7A and Pre December 2009 UPE changes

Tax Planning Opportunities

Read more about the tax planning opportunities related to the extensions of the Loss Carry-Back provisions and the Immediate write-off of depreciable assets.

For more information on the Budget announcements, and potential planning opportunities, or if you would like to discuss some of these planning opportunities that may be available, please do not hesitate to contact our office.

 

Disclaimer

The information provided in this article does not constitute advice.  The information is of a general nature only and does not take into account your individual situation.  It should not be used, relied upon, or treated as a substitute for specific professional advice.  We recommend that you contact Brentnalls WA before making any decision to discuss your particular requirements or circumstances. 

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Chris Mandzufas

Chris Mandzufas

Chris has a diverse range of skills and experience as a result of providing accounting, taxation, advisory board and management consulting services to owners and directors of fast growing businesses.

Chris Smith

Chris Smith

Chris Smith has been a member of the Chartered Accountants Australia & New Zealand since 2006, a member of the Tax Institute of Australia since 2013, and a registered Tax Agent since 2018.

Tony Monisse

Tony Monisse

Tony’s key focus is the integration of strategy and financial management. To this end he has developed tools and process that facilitate this integration, including business modelling, target setting and rolling cash flow forecasts.

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