2021-22 Mid-Year Economic & Fiscal Outlook (MYEFO)

  • Cash deficit of $99.20 Billion is expected, which is equivalent to 4.50% of GDP. This is in fact an improvement of $7.40 Billion from the previous budget.
  • Tax receipts as a share of GDP are expected to fall from 22.90% in 2020-21 to 22.10% in 2024-25.
  • $111 Million will be provided to continue the ATO’s compliance programs on personal income tax & shadow economy.
  • Grants for Tropical Cyclone ‘Seroja’ will be exempt from tax.
  • FIFA Women’s World Cup 2023 – Tax Exemptions will be provided to FIFA & an Australian Subsidiary of FIFA for the income generated through the World Cup for the period from 1st July 2020 (retrospectively) to 31st December 2028.
  • Pastoral Care in Schools – A new category will be established in the DGR for funds that support pastoral care and analogous wellbeing services delivered to students in primary & secondary schools.

 

Extension to SME Loan Guarantee Scheme

  • This scheme has been extended by another 6 months up to 30th June 2022.
  • This is in operation since 23rd March 2020 and has been extended multiple times now.
  • All the terms & conditions remain the same except the government guarantee, which has been reduced from 80% to 50%.

 

STP Exemption to Withholding Payer Number (WPN) holders

  • The ATO has provided exemption to WPN holders from reporting under STP for 2021-22 & 2022-23 Financial Years.
  • Any entity covered by this exemption may still choose to report under STP.
  • This is given a retrospective effect from 1st July 2021.

 

Rebranding Pension Loans Scheme

  • The Pension Loans Scheme is rebranded as the ‘Home Equity Access Scheme’.
  • The interest rate has been reduced from 4.50% to 3.95% with effect from 1st January 2022.
  • To be eligible for this scheme, the retirees must have reached the pension age, own a real estate in Australia & meet residency requirements.
  • There is no specific requirement to receive a pension to be eligible for this scheme.

 

Highlights from the ATO’s Corporate Tax Transparency Report 2019-20

Particulars 2020 2019 Increase/(Decrease)
Entities Covered 2,370 2,311 2.55%
Total Income $2,185.50 Billion $2,130.12 Billion 2.60%
Taxable Income $208.04 Billion $207.83 Billion 0.10%
Tax Payable $57.20 Billion $56.08 Billion 2.00%
Entities with no Income Tax 782 1,222 (36.01%)
Entities with Petroleum Resource Rent Tax (PRRT) 12 11 9.09%
PRRT Collected $0.88 Billion $1.06 Billion (16.89%)

 
Extension to Victorian Commercial Tenancy Relief Scheme 

  • This scheme has been extended up to 15th March 2022.
  • The eligible turnover has been reduced to $10M or less per annum.