Welcome to Dynamic Business’ coverage of the 2021-22 Federal Budget as the night unfolded.
Find more on the 2021 Budget right HERE.
$10 billion going to infrastructure with roads and rail focus
Funding will include a new Melbourne freight hub ($2 billion) and an upgrade of the Great Western Highway running between Katoomba and Lithgow in NSW.
Said Ben Breen, Managing Director, Asia Pacific at Project Management Institute:
“The $10 billion grant allocated to major infrastructure projects will be key in boosting the employment rate across the country. To maximise the effect of this grant and the subsequent impact on employment and Australia’s COVID recovery, it is essential to ensure that those involved in the delivery of an infrastructure project have strong project management skills. Having the skills, knowledge and understanding of how to effectively manage all stages and aspects of extremely complex projects, across long time frames is crucial to ensuring projects are completed efficiently, on time, within budget and with the correct workforce being employed and engaged at the right time.”
ACTU unhappy with lack of focus on insecure jobs & low wages; say gender concerns still not addressed correctly
Australian Council of Trade Unions (ACTU) President Michele O’Neil said that the Government’s 2021 budget will not improve the issue of insecure work and low wage growth affecting working Australians, with billions of dollars going to business such as aged care, mental health and vocational training, without much in the way of accountability attached.
“Insecure and unreliable jobs are a brake on economic growth, wage growth and a fair recovery. This budget has done nothing to create more secure, reliable employment or increase wages.
“The billions provided to business in this budget are given without strings attached and risk again ending up in the pockets of shareholders and CEOs. Any Government financial support to private businesses should be conditional on reliable, well paid jobs.
“Funding for aged care and early childhood education should improve wages and conditions for workers in those sectors. More reliable, more secure employment for essential workers means better services and a stronger economy.
“This Government has overseen the longest period of low wage growth on record, and despite rebounding profits this budget confirms that working people will not benefit from the recovery with real wage growth either negative or flat until 2023/24.”
The ACTU President also said that the budget has failed to address concerns of gender pay gap or keeping women safe at home and at work.
“This budget contains $17.9 billion in tax write-offs for big business, and only $1.1 billion for women’s safety over the next four years. The Morrison Government has missed the opportunity to make the big structural changes needed by Australian women.”
Reducing red tape for businesses
Government is committed to Deregulation with measures across a number of areas, with an investment of around $120 million in Deregulation measures to reduce red tape for businesses interacting with the government; make it easier for businesses to hire employees; and to build foundations for future reforms.
Measures are expected to deliver an average reduction of $430 million per year in compliance costs.
Said Trent Innes, Managing Director, Xero Australia and Asia:
“The Government’s commitment to reducing red tape and recognition of regulation technology is pleasing. The Government’s explicit acknowledgement of the benefits of digitising processes and optimising regulation send a strong signal to the business community.
“For the business community, the deregulation commitment is one of the most important inclusions in the 2021 Budget.”
Patent Box — tax concession for Australian medical and biotechnology innovations
Government will introduce a patent box tax regime to push innovation, by taxing corporate income derived from patents at a concessional effective corporate tax rate of 17 per cent. This concession will apply from income years starting on or after 1 July 2022, and will apply to income derived from Australian medical and biotechnology patents.
Government says the patent box will put forth a competitive tax rate for profits that are generated from patents Australian owned and developed.
Frydenberg on Budget’s environmental protection funding:
“We are the custodians of this great continent for future generations.
“This budget provides over $480m in new funding for the environment, including $100m to protect our oceans.
“We are also upgrading our recycling capabilities, creating jobs and reducing waste sent to landfill.
“Australia is playing its part on climate change, having met our 2020 commitments and on track to meet and beat our 2030 target.
“Australia is on the pathway to net zero and our goal is to get there as soon as we possibly can, preferably by 2050.”
2021 Storms and Floods — tax treatment of qualifying grants
“The Government will provide an income tax exemption for qualifying grants made to primary producers and small businesses affected by the storms and floods in Australia. Qualifying grants are Category D grants provided under the Disaster Recovery Funding Arrangements 2018, where those grants relate to the storms and floods in Australia that occurred due to rainfall events between 19 February 2021 and 31 March 2021. These include small business recovery grants of up to $50,000 and primary producer recovery grants of up to $75,000. The grants will be made non-assessable non-exempt income for tax purposes.”
Our live updates as the Budget Speech unfolded:
Removing $450 monthly income threshold for superannuation guarantee.
Further $1.1 billion for women’s safety services, including emergency accomodation, legal assistance and counselling.
Focus on child services.
Over $19 billion to funding universities – 2021/2022.
30,000 more places in universities.
$2 billion to pre-schools to reform early education sector.
$2.3 billion to mental health and suicide prevention.
$17.7 billion to improve aged care system. Another 80,000 home care packages. Over 33,000 new training centres.
Over $119 billion over the next four years going to improve aged care system.
$13.2 billion over four years to meet the needs of Australians with disabilities.
Funding new medicines for breast and lung cancer, asthma and osteoporosis.
New patents taxed at concessional 17 per cent rate, almost half usually applied to large companies.
$1.5 billion to manufacturing sector.
$1.2 billion in digital economy strategy.
Further $1 billion in road safety and $1 billion to local road infrastructure projects.
$1.7 billion investment in childcare, making it for affordable for more low and middle-income families. “Giving more parents, especially women, the choice to take on further work.”
Keeping SME debt recovery actions out of the courts. Under coalition, “Small business will always be stronger.”
$2.1 billion to aviation, tourism, arts, and education providers.
Over 10 million low and middle income earners to be focus of new tax cut.
“Hard working Australian families will always be better off.”
Treasurer Hon. Josh Frydenberg: Further $1.9 billion further for COVID-19 rollout.
Treasurer Hon. Josh Frydenberg says Job Keeper helped 3.8 million Australians. Job Seeker helped 1.5 million.
Treasurer Hon. Josh Frydenberg begins. “Australia is coming back.”
Kicking off at 7:30pm AEST