As we try to cope with the effects of Covid19 as a nation, the Government has put forward a budget that allows us greater access to money, with the intention of encouraging us to spend. Here’s the highlights of incentives where you may be eligible:
Expanding access to First Home Super Saver Scheme
The First Home Super Saver Scheme (FHSSS), which has applied since 1 July 2017, will be expanded to increase the maximum amount of voluntary contributions that can be released under the scheme from $30,000 to $50,000.
Extended Availability of New Home Guarantee
From 1st July 2021, a further 10,000 places will be made available for first home buyers seeking to build a new home, or purchase a newly built home, with a deposit of as little as 5%.
Family Home Guarantee package
Single parents with a household income of less than $125,000 now only need to save a 2 per cent deposit to purchase a home. The program will support up to 10,000 single parents with dependants over 4 years.
Capital Gains Tax removed for granny flats
There will be a Capital Gains Tax (CGT) exemption for granny flat arrangements where there is a formal written agreement for a family member to reside on the relevant property (either in the same home or a separate building). The exemption will apply to arrangements with older Australians or those with a disability.
Downsizer Contribution now available from age 60
Previously, anyone over the age of 65 who sold their home and met certain other conditions, could contribute up to $300,000 (per individual) into their super. This minimum age will now be reduced to 60.
Work Test for Super Contributions
The work test is also being scrapped, which means people aged between 67 and 74 will no longer need to work for at least 40 hours over 30 consecutive days during the financial year before concessional or non-concessional super contributions are allowed.
SMSF Residency Requirements
Relaxed residency requirements for SMSF and small APRA-regulated funds (SAF) will allow their members to continue to contribute to their superannuation fund whilst temporarily overseas. From 1st July 2022, the central control and management test safe harbour will be extended from two to five years, and the active member test will no longer apply.
Pension Loans Scheme
The government will provide $21.2 million over four years from 2021-22 to improve the uptake of the Pension Loans Scheme by providing immediate access to lump sums of around $12,000 for singles, and $18,000 for couples.
Aged Care Package
The Government has announced a $17.7 billion package aimed at eliminating the home care waiting list within two years, mandating minimum care time in residential aged care homes and boosting the workforce. They are also adding 23,000 additional Home Care packages to allow senior Australians to remain in their home for as long as possible.
The JobSeeker payment has been increased by $50 per fortnight totalling $9.5 billion over the next 5 years. It applies to people on the Youth Allowance, Parenting Payment, Austudy, ABSTUDY Living Allowance, Partner Allowance, Widow Allowance, Special Benefit and Farm Household Allowance.