Federal Budget Update
IMPACTS FOR INVESTORS
On 11 May 2021, the Government handed down the 2021/22 Federal Budget. Whilst this marked a return to the traditional timing of the budgetary processes, the content of the 2021/22 Budget continues to remind us that our economy and way of life has still not returned to full normality post the events of COVID-19.
Continuing to provide for a safer environment and incentives to increase spending by taxpayers to stimulate the economy remained a consistent measure and is in line with the October 2020 Federal Budget. Whilst many measures had been announced prior to the formal delivery of the 2021/22 Federal Budget, there were a number of additional measures released that have the potential to impact on the wealth plans of a number of Australians. Many of these announcements could be regarded as a soft start to an election campaign by the Government, with expected commencement dates of 1 July 2022 – which is later than when the next Federal election will be held.
For many, the headline announcements may have centred on the extension of the low and middle income tax offset (worth up to $1,080) for another 12 months through to 30 June 2022, or the absence of any announcement of a change to the rate of super guarantee payments. However, there were also a number of other superannuation announcements that could have a significant (and positive) impact on the wealth plans of many Australians.
Beyond wealth, the Budget did also have a focus on health issues for Australians, with measures announced to improve access to mental health services which, for a number of people, has had a heightened focus since the onset of COVID-19. Additionally, a number of measures were focused on women, with some aimed at addressing the retirement savings gap between males and females.
Below is an overview of some of the measures announced in this year’s Federal Budget. There may be others that impact on your personal situation. A financial adviser can help outline what these measures may mean for you, and the opportunities available now, or in the future.
It is always important to remember that at this point, the Budget night announcements are only statements of intended change and are not yet law.