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“Australia is back!” Treasurer Josh Frydenberg stated! How will this effect you and Investing for retirement.

During this year’s Federal Budget an announcement was made from Treasurer Josh Frydenberg stating “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. What you need to know and how this may effect investing for retirement.

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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.

A great extract from the office of – https://ministers.treasury.gov.au/
article from: https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/speeches/budget-speech-2021-22

Retirees
Mr. Speaker, we want all Australians to get the most out of the superannuation system.

On average women retire with less superannuation than men.

So tonight, the Government will remove the current $450 per month minimum income threshold for the superannuation guarantee.

This will improve economic security in retirement for around 200,000 women.

Our plan will also make it easier for Australians to prepare for retirement and to be more secure once in retirement.

We will improve flexibility by no longer requiring older Australians to meet a work test before they can make voluntary contributions to superannuation.

We will allow those aged over 60 to contribute up to $300,000 into their superannuation if they downsize their home, freeing up more housing stock for younger families.

We will also enhance the Pension Loan Scheme by providing immediate access to lump sums of around $12,000 for singles, and $18,000 for couples.

Under the Coalition, Australian seniors will always have more control over their money.

 

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

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