The budget is finally here and we have summarised what we believe will matter to you the most. Please read on and get back to us if you have any queries.
- The $250 reduction to self-education expenses has now been removed. This means that if you incurred $2000 in self-education (subject to self-education rules), the full amount of $2000 will be tax deductible instead of $1750 ($2000 -$250).
- The LAMITO (Low And MIddle Tax Offset) of $1080 is staying for another financial year. Here is more details about LAMITO.
- The First home super scheme (FHSSS) will be extended for withdrawals up to $50 000, which used to be $30 000. If you are in the market for a house or refinance, let us know. We might be able to help.
- From the 1st July 2022, employers will need to pay super to everyone, even those earning less than $450 per month.
- From July 2021, the minimum super to be paid will go from 9.5% to 10%. Check your pay and ensure that you aren’t missing out.
- The Government has announced that it will allow individuals aged 67 to 74 years (inclusive) to make or receive non-concessional contributions (including under the bring-forward rule) and salary
sacrifice contributions without meeting the work test, subject to existing contribution caps.
- The Government will reduce the age limit from which downsizer contributions can be made by eligible individuals, from 65 to 60 years of age.
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Kervin and Team
Elite Tax Success