On 11 May 2021, the Government handed down the 2021/22 Federal Budget, marking a return to the traditional timing of Budget announcements post Covid.
You can read the detailed analysis here but there are some key takeaways that may be of benefit to you:
Super
The work test will be abolished. This means that individuals are no longer required to work for 40 hours in 30 consecutive days to be able to contribute to super. Anyone under the age of 75 will be able to make non-concessional contributions irrespective of their employment situation.
The non-concessional bring forward provisions, currently available up to age 65, will be extended to the under 75s as well – subject to the usual caps of course.
The qualifying age at which a downsizer contribution of up to $300,000 can be made to super, when selling a principal place of residence, has been reduced from 65 to 60.
The Government also made no comment on making changes to the rate of super guarantee that you can earn as an employee, meaning it will increase by 0.5% to a rate of 10.0% from 1 July 2021. It is currently legislated to then increase at 0.5% per annum until it reaches a rate of 12.0% from 1 July 2025.
There may be other measures that impact on your personal situation. A financial adviser can help outline what these may mean for you, and the opportunities available now, or in the future.
It is always important to remember that at this point, the Budget night announcements are only statements of intended change and are not yet law.
