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
|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.