Federal Budget 2021: Free Income Tax Calculator
Millions of Aussies should benefit from a pile of cash. Find out how you will benefit from budget spending.
The money was splashed into another big federal spending budget, with parents, first-time buyers and residents of senior care among the winners.
Millions of Australians have also benefited from a tax cut of up to $ 2,160 for couples. Known as the Low and Middle Income Tax Offset (LMITO), or colloquially as “The Lamington”, the compensation is payable when you file your tax return.
It is worth up to $ 1,080 for singles earning less than $ 126,000 and $ 2,160 for low- and middle-income couples.
You can find out how much you’re likely to get this year in our budget calculator below.
Child care fees have also been reduced for families with two or more children, although the cuts will not take effect until July 2022.
The $ 1.7 billion package will increase the subsidy for child care to a maximum of 95% for the second and subsequent children in care. It will also abolish the annual grant cap of $ 10,560 for high income earners.
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Part-time workers and mothers were also recognized with the threshold of $ 450 per month to pay for the mandatory scrapped super, thus increasing retirement income. This is the threshold which means that almost twice as many women as men do not get a super contribution when they work in precarious part-time jobs.
Families earning more than $ 189,390 will see the annual subsidy cap of $ 10,560 for child care removed, under changes that take effect in July 2022.
The elderly care sector will receive a boost of $ 17.7 billion, including $ 10 per day for each resident, 80,000 new home care packages (bringing the total to 275,000) and 33,000 new training places for nurses. Nurses and caregivers will have more face-to-face time with residents, but will receive higher retention bonuses.
Anyone over 60 who is looking to downsize their home can increase their retirement pension, paying up to $ 300,000 earned from the sale of their property to their super.
Single parents have received a huge injection of money into the real estate market as the government introduced a new program that allows them to buy a home with just a 2% down payment. The program would support up to 10,000 single parents with dependents over four years, starting July 1, 2021.
The five percent bond system for 10,000 first-time homebuyers purchasing a new home will also continue, with the government guaranteeing up to 15 percent of the loan. The First Home Super Saver will also allow up to $ 50,000 in voluntary contributions, compared to $ 30,000, for a first home deposit.
Tradies will benefit after a regime allowing most companies to write off the full value of eligible assets has been extended until June 30, 2023.
Some other key points from tonight’s budget:
- $ 15.2 billion on infrastructure projects
- $ 13.2 billion over four years for NDIS
- $ 10 billion for skyrocketing insurance premiums in northern Australia
- $ 9 billion over four years to increase JobSeeker by $ 50 bi-weekly
- $ 2.3 billion for mental health and suicide prevention
- $ 1.9 billion for strengthening national security, law enforcement and intelligence agencies
- $ 1.2 billion for the digital economy
- $ 747 million (versus $ 500 million) to reorganize defense bases in the Northern Territory
- $ 680 million on domestic violence programs
- $ 600 million for resilience projects, such as houses that are resistant to bushfires and cyclones
- JobTrainer will receive an additional $ 500 million
- $ 371 million on biosecurity to prevent pests and exotic diseases
- $ 255 million in tax relief for 1,000 small brewers and distillers
- $ 204.6 million to extend telehealth services until December
- $ 100 million boost for cervical and breast cancer screening
- $ 58.6 million for gas projects to avoid projected shortages in eastern states
- $ 15 million over two years for the Australian Associated Press Newswire