Key points in the federal budget 2021-2022
January 1, 2022
Key points in the Federal Budget 2021-2022
The Federal Budget 2021-22 has many announcements and proposals aimed at economic recovery and includes investment in jobs, essential services, business incentives and tax cuts.
Budget Highlights for Business
- Temporary full expensing measures extended until 30 June 2023 - eligible businesses can claim an immediate deduction for the total cost of depreciating assets.
- Temporary loss carry-back rules extended - eligible companies can carry back tax losses from the 2023 financial year to offset tax bills from 2019 onwards.
- Administrative Appeals Tribunal given the power to pause or modify ATO debt recovery action - reducing the legal fees and red tape for small business.
- Tax cuts - small to medium company tax rates will reduce to 25% from 1 July as planned.
- Recognition
From 1 July 2026, new laws will change how every accounting practice in Australia works with their clients. It’s not complicated, but it is important — and understanding what’s ahead will help things run smoothly when the time comes.
Treasurer Jim Chalmers has framed the 2026 Federal Budget as “the most important and ambitious budget in decades”.
Following the recent release of the December 2025 quarter average weekly ordinary times earnings (AWOTE) the annual concessional contribution (CC) cap will increase from $30,000 to $32,500 from 1 July 2026. The annual non-concessional contribution (NCC) cap will also increase to $130,000.
