Last night, the Government handed down the 2021 Federal Budget. We’ve analysed the Budget proposals and you can now access our insights and analysis.
Some of the key takeaways from this budget include:
- Removal of the work test. From 1 July 2022, individuals up to the age of 74 years will be allowed to make or receive non-concessional or salary sacrifice super contributions without meeting the work test.
- Downsizer contribution. The Government will reduce the minimum age requirement for the downsizer contribution from 65 to 60.
- First Home Super Saver Scheme. From 1 July 2022 the Government will increase the amount of super savings available to first home buyers from $30,000 to $50,000.
- SMSF residency requirements. The Government will amend the SMSF residency requirements to make it easier for funds to maintain their complying status where members move overseas.
- Complying income stream conversions. Individuals will be given two years to exit a specified range of complying retirement income stream products, such as term-allocated pensions.
- Aged care reforms. In response to the Royal Commission into Aged Care Quality and Safety, the Government is investing $17.7 billion over five years to improve the aged care system.
We have a range of information and materials available including the FirstTech Federal Budget Briefing Paper.
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If you have any questions or need more information, please email the FirstTech team or call 13 18 36 Monday to Friday 9:00am – 5:30pm (AEDT).
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Colonial First State Investments Limited ABN 98 002 348 352, AFS License 232468 (Colonial First State) is the issuer of FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Pension, FirstChoice Wholesale Pension, FirstChoice Employer Super offered from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. It also issues interests in the Rollover & Superannuation Fund (ROSCO) and Personal Pension Plan (PPP) offered from the Colonial First State Rollover & Superannuation Fund ABN 88 854 638 840. Colonial First State also issues interests in products made available under FirstChoice Investments and FirstChoice Wholesale Investments.
Colonial First State Custom Solutions is the registered business name of Avanteos Investments Limited ABN 20 096 259 979, AFS Licence 245531 (AIL). AIL is the trustee of the Avanteos Superannuation Trust ABN 38 876 896 681 which includes FirstWrap Plus Super and Pension, and is the operator of The Avanteos Wrap Account Service which includes FirstWrap Plus Investments.
Colonial First State and AIL are wholly owned subsidiaries of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank). The Bank and its subsidiaries do not guarantee the performance of FirstChoice and AIL products or the repayment of capital for your investment.
This is based on the understanding of current regulatory requirements and laws as at 11 May 2021. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Colonial First State or any member of the Commonwealth Bank group of companies, accepts responsibility for any loss suffered by any person arising from reliance on this information. This document contains general information strictly for adviser use only and is not to be handed to any investor. It does not take into account any person’s individual objectives, financial situation, needs or taxation circumstances. You should read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) before making any recommendations. Investors should read the relevant PDS or IDPS Guide before making an investment decision and consider talking to a financial adviser. Investors can obtain FirstChoice PDSs from colonialfirststate.com.au or by calling 13 13 36 and FirstWrap PDSs and IDPSs Guides from their adviser or firstwrap.com.au.
This information cannot be used or copied in whole or part without Colonial First State’s express written consent.
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