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Investment Property / Negative Gearing

The Balancing Act Budget 2021-22

The 2021-22 Federal Budget is a balancing act between a better than anticipated deficit ($106 bn),
an impending election, and the need to invest in the long term.

It is also a human budget (cynics would say voter focussed), with $17.7 billion dedicated to aged
care, more money in the pockets of low-income earners, the COVID vaccine rollout, $2 billion for
mental health, a women’s economic package including a childcare subsidy increase and funding to
prevent violence, and a Royal Commission into defence and veteran suicide.

Key initiatives include:

  • Extension of temporary full expensing and loss-carry back providing immediate deductions for business investment in capital assets.
  • Introduction of a ‘patent box’ offering tax concessions on income derived from medical and biotech patents.
  • Tax and investment incentives for the digital economy.
  • Extension of the low- and middle-income tax offset.
  • Childcare subsidies have increased for families with multiple children.
  • $17.7 billion over 5 years to reform aged care.
  • $2.3 billion on mental health infrastructure and programs.
  • New and extended home ownership programs for first homeowners and single parents.