Last year’s federal budget was a little like Jamie Oliver’s 5 Ingredients….simple and not a lot to it. And what else could we expect in such a crazy year.
But this year we’ve seen the Croquembouche of Federal Budgets, with lots of steps and ingredients. Treasurer Josh Frydenberg stated “Australia is back!”. A sprinkle of superannuation improvements, a teaspoon of tax benefits and some extra zest for aged care services.
For a super sweetener, taking out some ingredients is just what the recipe calls for with the removal of the work test for those aged 67-74 when making non-concessional and salary sacrifice contributions. It’s also proposed to extend the non-concessional bring forward provisions to this age bracket as well. There is a reduction to the lower age limit from 65 to 60 for home downsizer contributions.
Then stir in some honey for employees earning less than $450 per month, who will now receive super guarantee contributions on their wage.
As they say, kitchen’s sell houses. The increase to the first home super saver scheme from up to $30,000 to up to $50,000 adds some extra flavour for those wanting to enter the property market for the first time. There is also the family home guarantee for single parents and new home guarantee available, offering lower deposits for buyers.
As a taxation treat, an extra tax offset of up to $1,080 for 2021/22 for low and middle income earners may allow for some more gourmet ingredients, as will the indexation of the Medicare levy thresholds and more generous child care subsidy for families with two children under 5 in care.
Age pensioners haven’t been left out of the recipe, they will now be able to access lump sum advance payments under the Pension Loan Scheme.
And for the garnish, there have been improvements to aged care announced, such as an additional 80,000 home care packages amongst other things.
For a more detailed explanation of the changes, please click here or speak to your Goldsborough Adviser if you have questions about your personal situation.