As expected, the 2021/22 federal budget has retained a number of tax relief measures to support Australia's economic recovery.

The Low and Middle Income Tax Offset, accessed after tax returns are filed, will be available for another financial year at a cost of $7.8 billion.

The decision is expected to benefit more than 10 million people and is worth up to $1080 for individuals and $2160 for dual income couples.

Extending the LMITO should boost the economy by $4.5 billion in 2022/23 - when the payments go into people's pockets - the budget papers released on Tuesday said.

As well, the government is extending two business tax breaks - full expensing of certain depreciable assets and the carry-back of tax losses - for another year.

The first measure is available to almost all Australian businesses, while the second can be accessed by companies with annual turnover of up to $5 billion.

But the government also hopes to attract new businesses and talent to Australian shores by capitalising on the nation's relatively low COVID-19 infection risk and rebounding economy, pending the resumption of international travel.

It's introducing a concierge-type service at the Australian Taxation Office offering tailored advice to overseas firms wanting to invest or open branches from July 1 this year.

Also from July, the individual tax residency rule applying to travelling business people will be simplified to a "bright line" test - that a person must be physically in Australia for 183 days or more in an income year - before other criteria are raised.

The government is still working on finalising changes to the corporate residency test to increase certainty for foreign businesses and trusts.

However, to allow Australian companies to attract and retain overseas talent, the federal government will improve the tax arrangements applying to employee share schemes.

Elsewhere, craft beer makers and distillers will benefit from an increase in the cap for claims on the Excise Refund Scheme to $350,000, from $100,000, from July 1 this year.

The change means all makers of alcohol and wine producers will be on a level playing field when it comes to the excise issue.

Developers of digital games also get a sweetener with the announcement of a digital games tax offset worth $18.8 million in the years out to 2025.

Many will be eligible for a 30 per cent tax refund for development expenditure on games that don't involve gambling with a budget of $500,000 or more.

Australian Associated Press