In this budget Josh Frydenberg opened the purse strings in the interests of encouraging jobs, growth and ensuring that economic recovery continues at pace and into the future.
Some Key Numbers
- $17.7 billion to transform the aged care system.
- $7.8 billion to extend tax relief to around 10.2 million low and middle-income earners.
- $2.3 billion for mental health and suicide prevention services.
- $1.7 billion in Child Care subsidies for families.
The Low and Middle-Income Tax Offset will be extended for the 2021-22 Financial Year. This allows Australians earning up to $126,000 per annum to further reduce their tax payable.
|Taxable Income||LMITO for the tax year ended 30 June 2022|
|$37,000 or less||$255|
|$37,001 to $48,000||$255 plus 7.5% of excess over $37,000|
|$48,001 to $90,000||$1,080|
|$90,001 to $126,000||$1,080 less 3% of excess over $90,000|
The Government is offering rebates of up to 95% for families with two children in childcare, which equates to 250,000 families being better off by around $2,200 per year. The Child Care Subsidy cap of $10,560 per child per year is also being removed.
The Government is also removing the current income threshold so those who earn less than $450 per month per employer will be entitled to receive the superannuation guarantee payment. This is a win for casual and part-time workers and will allow them to earn superannuation on every dollar they earn.
Aged Care Focus
One of the biggest budget items is $17.7 billion to transform the aged care system over 5 years as a result of 148 recommendations from the Royal Commission into Aged Care. Outcomes include improved training and upskilling of aged and home care workers, structural reform, additional respite care services and a new Aged Care Act.
Mental Health Focus
Mental health services have been stretched by the pandemic and the Government has responded by allocating $2.3 billion to improve digital mental health services and to expand Headspace and Head to Health mental health centres across the country.
The Government is also committing $47.4 million towards screening for mental health issues among pregnant women and new mothers.
Whilst there are things to be critical of in this Budget, it does what it can with a large deficit whilst offering some instant relief to many millions of Australians, including the aged, women and low and middle income earners.