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.