This year’s Federal Budget is an ‘election budget’ with future tax cuts for all Australians, especially low and middle income earners. Overall, there were minimal changes to super proposed in the Budget, with minor changes to super contributions for older Australians.
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, the top personal income tax threshold of 19% will increase to $45,000.
- From 1 July 2024, the 32.5% tax rate will reduce to 30%.
- Increase to the tax offset for low and middle income earners.
- Increase to the age at which people can contribute to super without meeting the work test.
- A one-off energy assistance payment for people receiving government assistance.
Read how these changes could affect your financial situation.