Here are some of the key highlights from the 2021 Federal Budget.
- Personal income tax cuts for Low and Middle-Income earners benefitting by up to $1,080 for individuals or $2,160 for couples
- Introduction of a New Family Home Guarantee scheme aimed at single parents with dependants looking to build a new home or purchase an existing one with a deposit as little as 2%
- Extension of the New Homes Guarantee providing an additional 10,000 places in 2021-22
- Increased maximum amount of voluntary contributions from $30K to $50K under the First Home Super Saver scheme, enabling home buyers to bolster their deposit for a home
- Extension of the construction commencement period to 18 months for HomeBuilder
- Australians aged over 60 will be able to make a one-off, post-tax contribution of up to $300,000 per person (or $600,000 per couple) to their super when they sell their home (previously this scheme was only available to people aged over 65).
- The requirement for workers to earn at least $450 a month before their employers are obliged to pay super will be scrapped and will benefit those working part-time which are traditionally and predominantly women.
- A rule requiring those aged at least 67, but under 75, to have to be gainfully employed for at least 40 hours over less than 31 continuous days in order to make super contributions will be abolished
- The government will scrap the so-called active member test for self-managed super funds, meaning trustees based temporarily overseas can top up their Australian retirement savings
- Reduced tax rate for small and medium companies, from 30 per cent in 2014‑15 to 25 per cent from 1 July 2021
- Cash flow support will be provided via the extension of the JobMaker Plan — temporary loss carry-back measure. The extension will allow eligible companies to carry back (utilise) tax losses from the 2022-23 income year to offset previously taxed profits as far back as the 2018-19 income year when they lodge their 2022-23 tax return.
- The Government will support the economic recovery of, and provide continued assistance to, firms that received JobKeeper or are eligible flood-affected businesses through the SME Recovery Loan Scheme
- Extension of the JobTrainer Fund to address workforce shortages in key areas
Josh Frydenberg said as part of his closing speech: "Jobs are coming back. The economy is coming back. Australia is coming back and this Budget will ensure we come back even stronger, securing Australia’s recovery"
If you have any questions about the Federal Budget and how it relates to you and your situation, speak to us today.
It’s important to note that the above measures are still subject to change as not all have been passed as legislation. Source: budget.gov.au, abc.net.au, macquarie.com.au