The 2021 Federal Budget announcement is hours away, but Australians have a good idea of which key measures will be included in the nation’s next economic roadmap.
Tax offsets, support for first-home buyers, an overhaul of the aged care system, and tweaks to child care subsidies are all expected.
Here’s a brief list of what you can expect from today’s Federal Budget.
In just a few hours, Australian taxpayers will learn exactly how the Federal Government plans to deploy their funds over the next financial year.
And while every Federal Budget has wide-ranging implications for the ways we live, work, and earn, Tuesday’s announcement will come at a crucial moment.
Only a ‘brave government’ will pull income tax offset going forward11/05/2021|7min
Liberal Senator Gerard Rennick says it will be a “brave government” who decides to pull the Low and Middle Income Tax Offset going forward.
The Morrison government will extend the offset beyond its initial expiry date after it was introduced during the pandemic.
The extension will put a $7 billion dent in the budget and will be worth up $1080 for those earning less than $126,000 per annum.
“It’s going to be a brave government going forward to pull it,” Mr Rennick said.
“That’s not to do with this budget tonight, but good luck to whoever the government is who wants to pull it going forward.”
Australia Institute
“The budget has failed to deliver any meaningful tax reform,” said Ben Oquist, executive director of the Australia Institute.
“21 years into the 21st century we still have a tax system that looks more at home in the 19th century.
“For too long treasurers have ruled out new taxes. It is time to open up the debate about how much revenue we need and how best to collect it.
“A fairer and simpler tax system would wind back tax concessions; tackle inequities; ensure public goods are supported; discourage polluting and destructive activities; and collect more revenue more fairly.
“On any of these measure the budget has failed.
Opinion by David Koch
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Subscriber only The economy will boom, the average Australian will have a secure job, but not a big increase in wages, their house value will continue to go up strongly and price rises at the supermarket will stay low. That s the helicopter view of your financial life over the next 12 months from the Federal Budget. Thankfully, it will be a lot better than the last year. While the Federal Budget bombards us with data and new policies it is simply the blueprint for your financial life over the next year. And it s looking pretty good.
Australia s low and middle income earners will get almost $8billion back from the government after a key tax break was extended.
As expected, the 2021/22 federal budget has retained a number of tax relief measures to support Australia s economic recovery.
The Low and Middle Income Tax Offset, accessed after tax returns are filed, will be available for another financial year at a cost of $7.8billion.
Australia s low and middle income earners will get almost $8billion back from the government after a key tax break was extended
The decision is expected to benefit more than 10million people and is worth up to $1,080 for individuals and $2,160 for dual income couples.