2021-22 Budget: here's how you can benefit

Hansy Mannil Jul 10, 2023

The opening statement of the Treasurers remarks whilst delivering the 2021-22 Budget says it all; Australia is coming back.

In what can only be described as a relatively impressive rebound by many measures, the Government has underpinned what it believes is an opportunity to drive growth, investment and job creation through continued economic support and reform.

Whether it is additional tax cuts, extended investment benefits, additional apprenticeship support or investment in the digital economy, many Australians are likely to benefit from a "once in a 100 years" economic response to such a substantial global event that has, and continues to be Covid-19.

Here's a quick summary of what we cover below:

Key features of the 2021-22 Budget
Great new car & vehicle deals
Financial solutions to support and grow your business
Access a range of other helpful financial info

Key features of the 2021-22 Budget*

Here's a break down of the key features and benefits of the 2021-22 Budget:

Further deduction of eligible assets for companies with turnover up to $5B

Extending upon the existing policy, generous tax breaks will be maintained for over 99% of businesses allowing full expensing and loss carry-back rules into 2023.

To meet the criteria, all you need to do is purchase an asset after Tuesday 6th October 2020 and be first used before June 30 2023 (previously 2022). Assets that are covered by existing depreciation rules are covered and buildings remain excluded. This plan applies to both new depreciable assets and the cost of improving existing eligible assets. For small to medium businesses, second hand assets will also be covered.

Extension to generating a tax refund on losses

For companies with turnover up to $5B, the Government will allow the offsetting of losses against previous profits on which tax has been paid to generate a refund. Losses incurred up to 2022-23 can be carried back against profits made in 2018-19.

A comprehensive summary to both the tax deduction and refund schemes are available here.

Retaining the low & middle income tax offset

The Low & Middle Income Tax Offset (LMITO) will be retained into 2021-22, providing an additional $7.8B in tax cuts for household incomes and job creation, benefitting approx 10.2M households.

Enhanced digital & research incentives

For medical and biotechnology (and potentially clean energy investment), a discounted concessional tax rate of 17% will be applied (approx 50% of that which applies to larger companies) to income derived from new patents.

In addition there will be a streamlining of visas to target skilled workers and simplification of tax laws for startups and employee share schemes.

For a full breakdown of the 2021-22 Budget, view the official link here.

Great new car & vehicle deals

Take advantage of the extended tax breaks and asset write off opportunities and talk to our new car buying partners carconnect. They'll do the haggling with dealerships for you, get you a great price on your car and deliver it direct to your door or worksite. It's all done online!

Here's a selection of great commercial vehicle deals we have access to (amongst many others!), and you may be able to utilise the enhanced instant asset write-off incentive with:

^ Whilst carconnect expects to be able to source these prices or better for our customers, actual prices will depend on use, payment option, location and availability.

^^ This weekly repayment estimate is provided by Stratton Finance Pty Ltd (Australian Credit Licence: 364340. ("Stratton"). Stratton is a finance broker. This repayment is calculated with an interest rate of 4.95% p.a. over a term of 60 months with a 0% residual / balloon payment. Other residual / balloon amounts are available. The vehicle price shown may not include other additional costs such as stamp duty, government fees and other charges payable in relation to the vehicle. In order to provide this estimate, Stratton are required to make several eligibility assumptions, including property ownership. To comply with regulations, consideration may be given for credit score and loan to value ratio (LVR), this estimate has been calculated with an LVR of >90%. This estimate is based on several assumptions outlined above and should be used for information purposes only and is not an offer of finance on particular terms. Credit fees, service fees and charges may apply. Credit to approved applicants only. A quote, details of all fees and charges may be obtained by contacting Stratton via strattonfinance.com.au or calling 1300 STRATTON (1300 787 288).

Financial solutions to support and grow your business

Inline with announcements by the Government to support small to medium size (SME) businesses, a number of our lending partners have released new financial solutions to better support and enable growth for SMEs. These include features such as:

An initial repayment holiday up to 6 months
Products include a line of credit, meaning you have no interest charges unless you drawdown
Unsecured loans not requiring an asset as security
Loans up to $250,000 per borrower over three years
Simple and easy application process

As always, the financial products being made available by these lenders should be considered in the context of your own business and with the consultation of your accountant. Once you've assessed this, contact us so we can help you access these solutions.

Remember, your accountant is one of your best friends for maximising the budget benefits, speak to them today!

Access a range of other helpful financial info

We regularly publish a wide a range of general financial information in our newsroom, here's a hand-picked selection of information you might find interesting:

We're here to help, anytime

So it's time to make the most of the 2021-22 Budget, consider new funding solutions or just get a great deal on your finance by calling us now on 1300 787 288 or get started by estimating your repayments on a new car or vehicle or commercial equipment finance.

* Disclaimer: the information provided above is accurate to the best of our knowledge. That said, be sure to check with your accountant about suitability and appropriateness for you and your business.