In this special edition of Tax Update we outline this year’s Federal Budget key economic forecast indicators and the key tax measures announced by the Government on 11 May 2021. We've provided insight and commentary on what these changes may mean for you, your employees and your business.

Delivered in the midst of the continuing COVID-19 pandemic, this year’s budget sets out the next stage in the Government’s economic plan to get Australia through COVID 19. It seeks to secure Australia’s recovery by creating jobs, investment and innovation through a raft of targeted measures.

As the initial round of Government COVID 19 support concludes, the next stage of the Government’s plan to secure Australia’s economic recovery is focused on the transition to sustainable private sector led growth to create jobs and drive unemployment down to pre pandemic levels or lower.

The unemployment rate is forecast to fall to 4¾ per cent by mid-2023. The underlying cash balance is now expected to be a deficit of $161.0 billion in 2020-21, compared with $213.7 billion at the 2020-1 Budget and $106.6 billion in 2021-22.

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