The Federal Treasurer Josh Frydenberg recently handed down the 2021 Budget. To say it was a pre-election big-spending budget is probably an understatement!
Conditions for investment remain favourable as we move into a post-COVID recovery. Along with the huge amount of government spending and tax cuts, our interest rates and exchange rate are being kept artificially low kept low by the Reserve Bank engaging in quantitative easing (money printing). Furthermore, as the vaccine rollout continues around the world this should see growth pick up.
One positive of the budget was that Super and SMSF’s received a boost with a number of initiatives being announced which should increase the flexibility for Members to contribute to their Fund including:
- Removal of the work test for Non-Concessional Contributions for Members aged 67 to 74; and
- Reduced age Members can make property downsize contributions from 65 to age 60
There was also an increase in First Home Superannuation Scheme from $30K to $50K and abolishing the Active Member Test which increases the flexibility for SMSF Members to make contributions whilst living overseas.
Finally, it is a very busy time of year as the financial year draws to a close and I will be in touch to ensure everything is in place before 30 June!
The information provided should not be considered personal financial advice as it is intended to provide general advice only. The content has been prepared without taking into account your personal objectives, financial situations or needs. You should seek personal financial advice before making any financial or investment decisions.