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The 2021 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.

Tax Planning

• Retention of the low and middle income tax offset (LMITO)
• Extension of tax incentives for businesses
• Medicare levy low income thresholds to increase
• Modernising the individual tax residency rules
• Taxation of employee share scheme changes

Superannuation & Retirement Planning

• Relaxing the work test requirement
• Eligibility of home downsizer contributions from age 60
• Legacy retirement product conversions
• Removal of the $450 per month threshold for superannuation guarantee eligibility
• No change to the legislated Super Guarantee Increase
• Changes to the First Home Saver Super scheme
• Relaxing the residency requirements for SMSFs and SAFs

Government Benefit Planning

• Increased child care subsidies
• Extension of the First Home Loan Deposit Scheme.
• Improvements to the pension loans scheme
• Government response to the Royal Commission into Aged Care Quality and Safety

The 2021 Budget contained numerous changes 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 2021 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.