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The 2020 Federal Government Budget address has been delivered in Canberra overnight. This summary is focussed on the major changes to individual and family personal finances grouped into three main areas – tax planning, superannuation & retirement planning and government benefit planning.
- Accelerating personal income tax cuts.
- Temporary tax incentives for businesses to support new investments and increase business cash flow.
- Medicare levy low income thresholds to be increased.
- Exempting granny flat arrangements from capital gains tax.
Superannuation & Retirement Planning
- Temporary Early release of superannuation through to the end of December 2020.
- Temporary reduction in superannuation minimum drawdown requirements.
- Automatic continuation of superannuation account when changing employers.
- YourSuper Comparison Tool.
- Superannuation work test changes.
Government Benefit Planning
- Jobkeeper payments to continue through to March 2021.
- JobMaker Hiring Credit.
- Coronavirus Supplement extension.
- Additional Economic Support Payments for pensioners and other eligible recipients.
- Reduction in social security deeming rates.
- Additional 10,000 places provided in 2020-21 under the First Home Loan Deposit Scheme.
- Increases in the number of available Home Care Packages.
- Tax-free cash flow boosts of between $20,000 and $100,000 for eligible employers.
- HomeBuilder grants of $25,000.
- Temporary relaxation of the Youth Allowance Independence Test.
Whilst the income tax breaks grabbed the attention of the media, there were a multitude of changes in the 2020 Budget that will need to be worked through by singles, couples and families depending on your age and circumstance.
If you would like to discuss any of the details contained in the budget and how those details impact your personal situation, please do not hesitate to be in contact.
This document has been prepared as a brief summary of the 2020 Federal Budget as it impacts on personal finances. It is a publication of A Clear Direction Financial Planning. It contains general financial information. Readers should check this information with a professional financial adviser before acting on any of the material contained in this document.