The Government handed down the 2021-22 Federal Budget on 11th May 2021. It goes without saying that whilst the budget marked a return to the traditional timing of the budgetary processes, the content of the 2021-22 Budget continues to remind us that our economy has not yet returned to full normality, post Covid-19.
The key initiatives in this year’s Federal Budget include:
- Extension of the Low and Middle Income Tax Offset for another 12 months.
- Tax relief for businesses, including the extension of the instant asset write-off provisions.
- Medicare levy surcharge and private health care thresholds unchanged.
- The work test for people aged 67-74 has been removed in relation to salary sacrifice and non concessional contributions.
- Downsizer contribution eligibility has been reduced from 65 years to 60.
- Ability to commute certain legacy income stream products.
- A range of measures in relation to social security and aged care, including additional support to older Australians through home care resources and other measures as a result of the Royal Commission into Aged Care Quality and Safety.
- Additional measures to help Australians secure ownership of their first home.
- Increase childcare subsidies to families.
NB: It is important to remember that the measures outlined in this Federal Budget Summary are proposals only, and are not yet legislated.
To read a more detailed summary of key proposals, please click here.
Jenneke Mills from MLC Technical has also summarised the budget for us. Please click here to watch this video.
If you would like to discuss anything in this years Federal Budget, please do not hesitate to contact us on (02) 9241 3214.