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We have summarised the key points from the 2021-2022 budget, that we believe will have the most impact on our clients.
Please keep in mind that all budget measures are proposals and will require the passage of legislation to become effective.
Summary points | Other
JobTrainer Fund
The government will extend the JobTrainer fund until the end of 2022 subject to the state and territory governments matching the funding. The fund will deliver an additional 163,000 places in low fee and free training in areas of skill shortage to support jobseekers, school leavers and youth.
Boosting Apprenticeship Commencements wage subsidy
The Boosting Apprenticeship Commencement wage subsidy will be expanded over 4 years from 2020-2021 to further support businesses and Group Training Organisations to take on new apprentices and trainees.
This measure will uncap the number of eligible places and increase the duration of the 50% wage subsidy to 12 months from the date an apprentice or trainee commences with their employer. From 5 October 2020 to 31 March 2022, businesses of any size can claim the Boosting Apprenticeship Commencements wage subsidy for new apprentices or trainees who commence during this period. Eligible businesses will be reimbursed up to 50% of an apprentice or trainee's wages of up to $7,000 per quarter for 12 months
HomeBuilder program
The HomeBuilder program provides a grant of up to $25,000 to build a new home or substantially renovate an existing home. To be eligible for the grant contracts are required to be signed between 4 June 2020 and 31 March 2021. The construction of these contracts was originally required to commence within 3 months of the contract date. This was subsequently extended to 6 months then 18 months on the 1 April 2021 for all applications.
Family Home Guarantee
The family home guarantee will provide support to single parents with dependants. The program will allow eligible parents to enter the housing market with a deposit of at least 2%. Applicants must be Australian citizens at least 18 years of age and have a taxable income of no more than $125,000.
The Tax Institute advised that we will be informed of further eligibility criteria next week on the National Housing Finance and Investment Corporation (DHFIC) website
The budget also extended the first home loan deposit scheme to 30 June 2022. This scheme allows eligible first home buyers to either build new homes, or purchase newly constructed homes with deposits as little as 5%.
If you have any questions or concerns about the proposals from the Federal budget announcements, please contact your Ulton Advisor to discuss.
Want to learn more about the other announcements? We have broken the full budget down into 6 main categories for usability.
Source:
The Tax Institute Federal Budget Report 2021-2022, May 11, 2021.
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