How does the Budget Affect Us? Independent Modelling of the Federal Budget 2021-22

Research output: Book/ReportReports

Abstract

The 2021-22 Budget introduces several changes to Australia's tax and transfer system, affecting many households, especially those with young children. We incorporate the relevant changes into a microsimulation model to estimate distributional impacts on the population. Specifically, we included:

Increased baseline payment and lengthened tapering of benefits (i.e., higher benefits retention as income increases),

Extended low and middle-income tax offset in year 2021-22,

Additional childcare subsidy for those with at least two young children under five and removal of the income cap for childcare subsidy eligibility from 2022, and

Easing borrowing constraint for home buyers via government guarantee.
This report uses the latest household data and simulations to examine the impact of the proposed policy changes on household disposable income and on childcare and housing affordability.
Original languageEnglish
Place of PublicationAustralia
PublisherSTINMOD+
Number of pages20
Publication statusPublished - 2021

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