2021 Federal Budget

The Federal Treasurer, the Hon. Josh Frydenberg MP, delivered his third Federal Budget on 11 May 2021.

The Budget papers include a number of measures that may impact you, especially in the superannuation area.

On the personal taxation front, the proposed changes include an extension to the low and middle income earner tax offset and modernising the tax residency rules.

For businesses, there are proposed extensions to full expensing and loss carry back rules, as well as a number of employment boosting initiatives.

The superannuation changes include a repeal of the work test, a reduction in the downsizer contribution minimum age, and changes to the self managed superannuation funds (SMSF) residency rules.

There are also changes to not-for-profits, philanthropy, child care, and social security.

This picture summarises the key proposals in the budget

2021-federal-budget-infographic_JFM.pdf

If you would like a bit more information on each proposal, this summary provides coverage of the key issues

2021-federal-budget-summary_JFM.pdf

Only the main points of interest of the budget are in this document. These are the changes that we believe will be of interest to most readers.

This has been prepared as an easy to read document for general information only. No part of this document should be relied upon. Please contact us for advice that will be specific to your situation.

As always, please contact us on 02 9906 6566, if you have any questions.

Damien