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Federal budget

2021 Federal Budget - Summary of announcements

Section: 1.0

2021 Federal Budget - Summary of key announcements

The Treasurer Josh Frydenberg delivered the Federal Budget on Tuesday 11 May 2021. The following is a summary of the key announcements.

Timeframe Announcement
  • Medicare levy low-income thresholds increased for singles, families, and seniors and pensioners from 1 July 2020
  • Retaining the low and middle-income tax offset
  • Temporary full expensing of eligible assets and first used or installed by 30 June 2023 by businesses with up to $5 billion aggregated turnover
  • Consistent four-year Newly Arrived Resident's Waiting Period across most welfare payments
  • Increase in child care subsidy and removal of subsidy cap
Following Royal Assent of enabling legislation
  • Removal of the work test for those aged 67-74 to allow them to make non-concessional contributions 
  • Access to non-concessional bring-forward arrangement for individual aged 67 to 74 years, subject to eligibility
  • Allowing a two-year window to allow individuals to exit certain legacy retirement products
  • Downsizer super contributions - Reducing eligibility age from 65 to 60
  • First Home Super Saver Scheme - Increasing the maximum releasable amount to $50,000
  • Increased funding to APRA and Super Consumers Australia ($11.2 million over four years) to support members
  • Maximum release under the First Home Super Saver Scheme increased to $50,000
  • Pension Loans Scheme enhancements - Lump sums access and guarantee against negative equity
  • Pension Loans Scheme enhancements - Lump sums access and guarantee against negative equity
  • Relaxing residency requirements for SMSFs
  • Removing the $450 per month threshold for superannuation guarantee contributions
  • Repealing work test for individuals aged 67 to 74 (inclusive) for making voluntary superannuation contributions

This technical resource is intended for the use of financial advisers only. It is current at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Tuesday, August 24, 2021