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.