Treasurer Josh Frydenberg’s second pandemic Budget, and possibly his last before the next federal election, is a big spending Budget aimed squarely at a swift economic recovery.
As widely tipped, the focus is on jobs, aged care, childcare, women and first -home buyers with some superannuation and tax sweeteners added for good measure.
Some of the key takeaways from this budget include:
Superannuation
- Removal of the work test. From 1 July 2022, individuals up to the age of 74 years will be allowed to make or receive non-concessional or salary sacrifice super contributions without meeting the work test.
- Bring forward Non-Concessional contributions. Individuals in the 67-74 age group will now be able to utilise this feature
- Superannuation Guarantee threshold. Removal of the current $450 per month minimum income threshold
- Downsizer contribution. The minimum age requirement for the downsizer contribution will be reduced from 65 to 60.
- First Home Super Saver Scheme. From 1 July 2022 the Government will increase the amount of super savings available to first home buyers from $30,000 to $50,000.
- SMSF residency requirements. The Government will amend the SMSF residency requirements to make it easier for funds to maintain their complying status when members move overseas.
- Complying income stream conversions. Individuals will be given two years to exit a specified range of complying retirement income stream products, such as term allocated pensions.
- Aged care reforms. In response to the Royal Commission into Aged Care Quality and Safety, the Government is investing $17.7 billion over five years to improve the aged care system.
Taxation
- Low and middle income tax offset. Will be extended for an additional 12 months
- Businesses. Tax relief, including extension of the instant asset write-off provisions.
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