Federal Budget 2021 – 2022
Federal Budget 2021 - 2022
Last night, the Treasurer, the Hon Josh Frydenberg MP brought down the 2021-22 Budget. The theme of the budget included creating jobs and rebuilding the economy, guaranteeing the essential services, building a more secure and resilient Australia and supporting Australians through COVID-19.
The Department’s Portfolio Budget Statements (p59) confirm the funding to RDA Committees, reflecting a slight increase in program funding from last year’s Budget papers, in line with indexation. As you know, the new funding agreement reintroduces annual indexation for RDA Committee payments.
For more information about the Budget please go to https://budget.gov.au/ This website outlines the Budget Papers, the Women’s Budget Statement and the Treasurer’s speech and the Ministerial media releases.
The Regional Ministerial Budget Statement 2021-22: Supporting Regional Recovery and Growth was also released and can be found at https://budget.gov.au/2021-22/content/ministerial-statements/index.htm
The key numbers:
- $106 billion deficit this year, with deficits forecast for the next decade
- The biggest spend is $17.7 billion on improving aged care, in particular funding thousands of extra home care packages
- $3.4 billion spend on women in the budget — more than half of that will go to childcare
- The low and middle income tax offset (LMITO) has been extended. Up to $1,080 for individuals or $2,160 for couples
- $3.4 billion package for women –
- Approximately half to go towards reduced childcare costs,
- $260 million will be spent over the next four years to expand frontline family violence support services
- $164 million will go towards a two-year trial offering financial help to women fleeing family violence. That scheme will provide payments up to $5,000, made up of a $1,500 cash payment and the remainder in goods.
- Mental Health –
- Improvements to the government’s digital mental health services, as well as to expand Headspace and Head to Health mental health centres across the country.
- Approximately $160 million will be spent on care for people following a suicide attempt, and more money for support services for fly-in fly-out workers.
- Doubling as a measure to support women, the government is also committing $47.4 million towards screening for mental health issues among pregnant women and new mothers.
- Aged Care –
- Commitment to funding 80,000 more home care packages over the next two years, and to mandating a minimum three hours and 20 minutes of care per day for people in residential care — with at least 40 minutes of that being with a registered nurse.
- Those two initiatives alone will cost about $10.4 billion, with another $7.3 billion in spending planned to improve health services, train carers and introduce a star rating system to rank aged care providers, among other things.
- This is off the back of the royal commission’s damning findings into an aged care sector suffering from chronic underfunding.
- The government has agreed to nearly all of the aged care royal commission’s recommendations — the most significant recommendations it has rejected were in relation to introducing a levy to fund the new spending.
- It says it’ll fund the new spends using revenue that will come with a growing economy.
Highlights for Business:
- 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.
- 12-month extension of the temporary expensing measures and loss carry back for small and medium sized businesses.
- Reducing the tax rate for small and medium companies to 25% from 1 July 2021.
- A patent box to help commercialise Australia’s great ideas and innovations applying first to the medical and biotech sectors.
- $1.5 billion towards the modern manufacturing strategy delivery.
Highlights for our 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.
- Speech – Regional and Rural Budget 2021 Address