How will the Federal Budget affect you?

During this year’s Federal Budget announcement Treasurer Josh Frydenberg stated “Australia is back!”. The Budget proposes positive changes to superannuation, an extension of the low and middle income tax offsets and a boost to aged care services.

We’ve summarised some of the key points from the Budget below but, remember, these are subject to the passing of legislation:

  • From 1 July 2022, if you’re aged 67 to 74 you will not be required to meet the work test to make non-concessional contributions and salary sacrifice contributions to super.
  • From 1 July 2022, you can make downsizer super contributions if you’re aged 60 and over (currently you need to be age 65 or over).
  • From 1 July 2022, if you’re a first home buyer you can release up to $50,000 from your voluntary super contributions to help you buy your first home (up from $30,000).
  • The low and middle income tax offset is to extend to the 2021/22 financial year with a maximum offset of up to $1,080 for individuals or $2,160 for a couple.
  • Additional support for elderly Australians requiring care either within the home or in a residential aged care facility.

Read the Federal Budget summary to find out how these proposed budget changes may affect you.

Please be aware these are only proposals and the Budget announcements still need to be passed by both the House of Representatives and the Senate before they become law.

If you have any questions please speak to your financial adviser or call us on 1800 254 180.

This information is issued by Australian Executor Trustees Limited (AET), ABN 84 007 869 794, which holds Australian Financial Services Licence Number 240023 and is a summary of our understanding of the proposed Federal Budget 2021/22 changes announced on 11 May 2021. AET is a company within the IOOF Group of companies, consisting of IOOF Holdings Limited ABN 49 100 103 722 and its related bodies corporate. The changes are subject to the passing of legislation and, accordingly, may not become law or may change. Please note that the information is based on our interpretation of the proposed changes as at the date of issue of this document. This is general advice and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should determine whether it meets your needs or seek advice from a financial planner or a registered tax agent. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. If you wish to opt out of future communications, please contact us. Part of the IOOF group.