2021 Economic Recovery Initiatives from the Treasury

Key Points
  • From 1 January 2021 a number of key Government led initiative will come into effect, lead by the Morrison Government.
  • Plan aims to help re-build the economy post the COVID-19 crisis, by securing Australian jobs and keeping businesses in business.
Full Article

As we herald in 2021 the Morrison Government’s Economic Recovery Plan will also come into play and aims to help re-build the economy post the COVID-19 crisis, by securing Australian jobs and keeping businesses in business.

From 1 January 2021 a number of key Government led initiative will come into effect including:

Changes to the Insolvency Framework

Notably the most significant changes to Australia’s insolvency framework in 30 years, these reforms aim to reduce the costs of the insolvency process, cut red tape and help more small businesses recover from the pandemic.

The reforms include a new, simplified debt restructuring process, drawing on key features of the Chapter 11 bankruptcy model from the United States. These measures apply to incorporated businesses with liabilities of less than $1 million – covering around 76% of businesses subject to insolvency today, 98% of whom who have less than 20 employees.

Choose your Own Super Fund

Australians will have more power to choose their own superannuation fund, instead of being forced into a fund because of enterprise bargaining agreements. ‘Your Superannuation, Your Choice’ allows around 800,000 Australians to decide where their hard-earned retirement savings are invested, representing around 40% of all employees covered by a current enterprise agreement.

HomeBuilder Program

The Government’s HomeBuilder program has been extended to 31 March 2021. The scheme is expected to support the construction or major rebuild of an additional 15,000 homes, bringing the total to around 42,000 projects across Australia.

HomeBuilder continues to drive demand in the construction sector, helping to protect the jobs of the more than one million employed Australians.

Additions to the Pharmaceutical Benefits Scheme

Australians will be able to access more affordable medicines with the addition of more items to the Pharmaceutical Benefits Scheme (PBS). These include Darzalex® (Daratumumab) for patients with multiple myeloma (a common form of blood cancer), Otezla® (Apremilast) (a treatment for those living with severe chronic psoriasis) and Tagrisso® (Osimertinib) (a targeted therapy for non-small cell lung cancer).

University Study

Up to 30,000 more Australians can now study for a university degree as part of the Government’s Job-ready Graduates package. Course fees will be discounted in areas of expected future job demand, like teaching, nursing, clinical psychology, agriculture, and engineering.

Regional students also have access to a $5000 one-off scholarship to help with relocation costs.

Foreign Investment Framework

2021 heralds in major reforms to Australia’s foreign investment framework, with new requirements for foreign investors. These changes aim to ensure Australia keeps pace with emerging risks and global developments, as well as aligning to changes in foreign investment regimes in comparable countries.

If you have any questions or need advice and clarity specific to your situation, feel free to contact Semmens & Co on 03 8320 0320 for a free consultation.

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Mark Semmens

Mark is a Chartered Accountant with a wealth of experience in accounting and taxation. Mark is a Member of Chartered Accountants Australia and New Zealand, the Tax Practitioners Board and the National Tax and Accountants Association.

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Daniela Semmens

Daniela Semmens is a Co-Director of Semmens & Co. and joined the company as General Manager in 2017. Daniela is an Affiliate Member of Chartered Accountants Australia and New Zealand and also a Member of the Australian Institute of Project Management.

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