• JPFS

Federal Budget Briefing 2021


Introduction


Recently the Federal Government handed down its Budget for the 2021-22 financial year. Compared with last year’s record deficit of $213.7 billion, the underlying cash deficit is projected to decrease to $161 billion as the economy continues on the path to recovery from Coronavirus. Some of the key Budget announcements that should be of particular interest to you and your clients include:

  • the removal of the work test for non-concessional and salary sacrifice contributions

  • a reduction in the minimum age requirement for downsizer contributions

  • an increase in the amount of super savings available to first home buyers

  • additional investment into aged care following a Royal Commission into the quality and safety of the system.

It’s important to note that the legislated increases to superannuation guarantee were not amended in the Budget. Therefore, rate of superannuation guarantee will increase to 10% from 1 July 2021, as previously legislated.

In addition, the Government did not annonce an extension of the halving of the account based pension minimums. As a result, the standard minimum drawdown requirements will apply from 1 July 2021.

Also, keep in mind that the announcements made in the Budget remain proposals at this stage. All of the proposals mentioned must be passed by Parliament before they become law.

ft-fed-budget-briefing-paper.-2021
.pdf
Download PDF • 483KB

Recent Posts

See All

Federal Budget 20/21 - Social Security & Aged Care

$250 economic support payments Two tax-free economic support payments will be paid to aged pensioners, veterans and eligible concession card holders – one payment in November 2020 and the other in ear

Federal Budget 20/21 - Superannuation

Fund stapling Under this proposal, effective from 1 July 2021, once an employee has a super fund and they change jobs, their new employer will contribute to their existing fund. Employees will however