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.

Tax Focus

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
Over $126,000 Nil

Family Focus

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.