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.
