Is there anything in the Federal Budget I should know about?
Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 4 June 2021. This week’s topic: The Federal Budget 2021-22.
Although the Federal Budget was handed down a short while ago, it takes some time to really look into the detail and do the analysis to work out the wins and losses. It’s important to remember that the budget announcement is just that – an announcement. The proposals don’t become law until they are passed by both houses of parliament.
In this episode Luke provides his insights into the Federal Budget 2021-22.
Key highlights include:
- Wait until the proposals become law before you take action and as always seek advice if you need to.
- A proposal to remove the minimum threshold of $450 for super payments. This means people earning $450 or less would be eligible to receive super guarantee payments from their employer.
- A proposal for the removal of the work test for people aged 67 to 74. This means that people can put money into super without having to work. It’s also a great opportunity to use the downsizing legislation, where you can downsize your home and put money into super.
- A proposal to allow people over 65 to use the bring-forward super rules. This will mean people over 65 can use this strategy.
- An opportunity to increase the amount of money you can put into super from 1 July 2021 (both tax deductible and non-deductible super contributions).
- A proposal to lower the age the downsizing rules from 65 to 60. This will mean people from the age of 60 can use this strategy and fund your retirement sooner.
- A proposal to increase the amount of money available in the first home buyers through the super home buying scheme.
- A proposed change to the residency test for self-managed super funds to allow people outside of Australia to control a SMSF.
- Super contributions from your employer will rise from 9.5% to 10% from 1 July 2021 – this has been passed. So all working people entitled to receive super should expect to see an increased contribution from their employer into their super from this date.
- Luke offers his strategy tips for making the most of the changes once they become law.
- Everyone has different goals and financial planning advice can help you achieve them more effectively, especially when you link different strategies.
Listen to the Podcast right now
Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’
Do you need advice around the budget opportunities?
Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. The legislation and strategy can be complicated but the good news is you can make an appointment to speak with Luke about your specific situation, goals and options.
Make an appointment to confidentially discuss super, investment, insurance or retirement. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.
Luke will return to talk about financial planning on 2CC next Friday fortnight. You can also catch up with The Strategy Stacker – Luke Talks Money podcast. We look forward to your company again.
