Federal Budget Highlights 2020-21; We have highlighted the proposed changes which might impact your business and your employees' super.

1. Federal Budget
Highlights 2020-21

2. Last night the FY2021-22 Federal Budget was handed
down. In this article we will review some of the
proposed implications to superannuation.

3. Super Guarantee set to increase
Super Guarantee (SG) contributions, currently set at
9.5%, will increase to 10% in July 2021, and by July
2025 will increase to 12% of your employees’ base
wage. At this stage, the below changes are proposals
only. For them to take effect, they need to be passed
into law.
The $450 per month income threshold will be removed
Currently, employers only need to make SG
contributions for employees that are 18 years and older
and are paid $450 or more (before tax) per calendar
month

4. From 1 July 2022, the Government has announced
they’ll remove the $450 per month income threshold
and employers will be required to pay SG contributions
to all eligible employees aged 18 or older, regardless of
their income. This is a significant change to employers
with a young or a casual workforce.

5. Fewer restrictions on contributions for older
Australians
If you have employees aged between 67 to 74 they will
have more opportunities to contribute to their super as
the work test will be removed if they make or receive
‘non-concessional’ or ‘salary sacrificed’ contributions,
subject to existing contribution caps.

6. More for first home savers
First home buyers will be able to withdraw up to
$50,000 of their voluntary super contributions under
the First Home Super Saver Scheme. This increased
from $30,000.
Investment incentives and tax cuts
The Government is extending temporary full expensing
for an additional year until 30 June 2023. Temporary
loss carry-back is also being extended to include the
2022-23 income year.

7. In addition, reducing the tax rate for small and medium
companies, from 30 per cent in 2014-15 to 25 per cent
from 1 July 2021.
Your Future, Your Super
Although no further announcements were made in the
Budget, the legislation is scheduled for debate in the
House of Representatives on Wednesday 12 May. If
passed, likely to progress to the Senate in June at the
earliest. We will continue to update you with further
information as it comes to hand and reach out to our
team for information and support.

8. https://www.ikeep.com.au/