The Balancing Act Budget 2021-22
Anthony de Jager • May 19, 2021
THE BALANCING ACT BUDGET 2021-22
The 2021-22 Federal Budget is a balancing act between a better than anticipated deficit ($106 bn), an impending election, and the need to invest in the long term.
The key initiatives we believe are relevant to you, our clients, include:
- The low and middle income tax offset will be extended to the 2022 tax year – provides an offset up to $1,080 for individuals earning up to $126,000, which is in place for the current year;
- The temporary full expensing of assets purchased has been extended to 30 June 2023, meaning that eligible businesses can continue to claim a full deduction in the year of purchase for eligible assets.
We have a full guide available to you which breaks down the budget. You can access it for free here.
If we can assist you to take advantage of any of the Budget measures, or to risk protect your position, please contact us.
For property owners and managers, the line between a repair and a capital expense is more than semantics; it drives whether you claim a deduction now, claim it over time, or add it to cost base for CGT. The ATO has issued clearer guidance and fact sheets, and the expectation is that claims match what the work actually does , not how an invoice is labelled.
Fringe Benefits Tax (FBT) has moved firmly onto the ATO’s radar. Over the past year we’ve seen more data-matching, sharper guidance, and “nudge” letters landing with employers, especially around cars, reimbursements, entertainment, and employee benefits that blur the line between business and private use. This shift was widely anticipated, and highlights that FBT is now a standard year-end obligation, not a “maybe.”
Payday Super is one of the biggest practical changes to employer superannuation in years. The intent is simple: super payments will move from a “set-and-forget” quarterly rhythm to a process that runs alongside your normal payroll cycle. For most businesses, the key is not “more work” - it’s making sure your payroll setup, cash flow planning and employee fund details are ready so payments can flow through cleanly and on time.
When profit feels tight, many businesses jump straight to chasing more revenue. Growth matters, but so does the quality of each dollar you keep. A practical way to improve your profit and loss (P&L) without disrupting sales is to take a fresh, focused look at your overheads .
The halfway mark is the perfect moment to pause, review, and reset. A calm, honest look at the first six months helps you protect profit, steady cash flow, and focus your team on what matters for the rest of the year. Think of it as a service for your business: check the gauges, make small adjustments, and keep moving confidently.
If you’re closing over Christmas/New Year, a little prep now means you can actually switch off, and reopen without a scramble. Use this simple plan to line things up before you lock the door, and to be ready for the first week back.
Getting the “employee vs contractor” call wrong can be expensive. It affects how you pay people, what taxes and super you owe, your workers comp and payroll tax, and your risk if the ATO or Fair Work take a closer look. Here’s a practical guide to the key differences, the hidden traps, and how a diligent accountant helps you stay on the right side of the rules.
What You Need to Know and Do
From 1 July 2025 , interest charges applied by the Australian Taxation Office (ATO) are no longer tax deductible .
What These Changes Mean for Your Business – and How to Prepare Now