The government has handed down a budget that is aimed at recovering the Australian economy after the pandemic-induced downturn last year. Amongst those who are set to benefit are women, first home buyers, the aged care sector and some families with more than one child.

Below are the main points from the budget announcement and what they mean for you and your family.

Federal Budget highlights

  • Changes to superannuation guarantee eligibility

    Changes to super

    The current requirement for you to earn $450 a month with an employer before you receive superannuation guarantee payments will be removed. Given that members who work casually and part-time are more likely to miss out on super under the current rule, the removal of the threshold will ensure that lower income earners will receive super.

    This change is proposed to start from 1 July 2022.

  • Removing the work test for voluntary contributions

    Removing the work test for voluntary contributions

    Members aged 67 to 74 years will be able to make voluntary non-concessional super contributions (including the ‘bring-forward’ rules) or salary sacrifice contributions, without having to meet the work test of working 40 hours over 30 consecutive days in a financial year, subject to the contribution caps.

    Please note that if you are aged 67 to 74 you will still need to meet the work test requirements to make any concessional personal deductible contributions.

    This change is proposed to start on 1 July 2022.

  • Low and middle-income earners

    Low and middle income

    If you earn under $126,000 a year, you may receive a tax offset of up to $1,080 ($2,160 for couples). This tax offset, which was originally planned to end on 30 June 2021, has been extended for another 12 months.

    The offset you’re entitled to will be automatically calculated when you complete your tax return.

  • Boosting the First Home Super Saver Scheme

    Boosting First Home Super Saver Scheme

    The maximum amount of voluntary contributions (concessional and non-concessional) that can be released under the First Home Super Saver Scheme is increasing from $30,000 to $50,000. This change, which is proposed to start from 1 July 2022, could help you purchase your first home sooner.

    In addition, the Government will make four technical changes to the legislation underpinning the First Home Super Saver Scheme to improve its operation as well as the experience of first home buyers using the scheme.

  • Using the proceeds of the sale of your house to add to your super

    Using the proceeds of the sale of your house to add to your super

    Australians who are approaching retirement may be able to boost their super balance.

    Individuals who sell the family home and meet the eligibility criteria may be able to contribute up to $300,000 ($600,000 for couples) into their super from age 60. This has decreased from age 65. For the eligibility rules please see the ATO website on downsizer contribution.

    This change is proposed to start from 1 July 2022.

  • Family Home Guarantee for single parents

    First home guarantee single parents

    As a single parent with dependants, you’ll will be able to purchase a home with a 2% deposit depending on a range of eligibility criteria.

    This scheme, which begins in July 2021, will be subject to property price caps.

  • New Home Guarantee for first home buyers

    New home guarantee first home

    If you’re a first home buyer looking to build a new home or buy a freshly built home, another 10,000 places will be available during the 2021/22 financial year under the scheme, which only requires a 5% deposit depending on a range of eligibility criteria.

  • Child care

    Child care

    The following changes, which aim to increase women’s participation in the workforce, will take effect from 1 July 2022:

    • - The childcare subsidy cap of $10,560 per child for a combined household income of over $189,390 per year will be removed.
      - Parents with two or more children aged up to five years will have their childcare subsidy increased up to a maximum 95% (an extra 30%) for their second and subsequent children, subject to eligibility.
  • Aged care

    Aged care

    Funds directed to the aged care sector is aimed at ensuring that quality aged care is accessible to as many older Australians as possible.

  • Women’s health

    Women's health

    More funding will be directed toward improving programs for women’s health.

Any advice on this webpage is of a general nature only, and does not take into account your personal objectives, financial situation or needs. Prior to acting on any information on this webpage, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek independent financial advice if you are unsure of what action to take.

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