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.
Below we have 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 age 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 (up from $30,000) from your voluntary super contributions to help you buy your first home.
- 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 of $2,160 for a couple.
- Additional support for elderly Australians requiring care either within the home or in a residential aged care facility.
For further details on the Budget update for 2021/22, see the attached detailed summary flyer provided by RI Advice. .Budget Summary Flyer
If you have any further questions on how the Budget for 2021/22 may affect your retirement and investment planning, please do not hesitate to call our office on (02) 6643 4477