2021 FEDERAL BUDGET
The 2021 Federal Budget has been announced, providing contribution opportunities for older Australians, ongoing assistance for business owners, and support for people looking to purchase a home. We have compiled some key points which may be relevant to you.
Remember, these announcements are just proposals and legislation would need to be formally passed before they become law.
- Extension of the low and middle income tax offset (LMITO) for an additional 12 months
- Tax relief for businesses, including extension of the instant asset write-off provisions
- Medicare levy surcharge and private health care thresholds unchanged
- Removing the work-test for people aged 67-74 in respect to salary sacrifice and non-concessional contributions (NCCs)
- Expanding eligibility to utilise the NCC bring-forward rule to people aged 67-74
- Reducing the eligibility age for downsizer contributions from 65 to 60
- Ability to commute certain legacy income stream products
Social security and aged care
- Changes to Pension Loans Scheme allowing limited lump sums
- Additional support to older Australians through home care resources
- Measures in response to the Royal Commission into Aged Care Quality and Safety
- Additional places under the First Home Loan Deposit Scheme (New Homes)
- Support for single parents with dependants to purchase a new or existing home.
If you have any questions regarding the proposed Federal Budget and how it may affect you, please don’t hesitate to contact our team. Alternatively you can find further information at https://budget.gov.au/