Well, it’s that time of year in Australia – Budget time! To save you from the “fiscal this” and “economic that” (unless that’s your thing, in which case get the full details here), we’re here to give you the headlines.
Tax reductions
- The tax offset for people who earn between $48,000 – $90,000 a year is being extended until 30 June ’22. If you’re in this range, you’re automatically entitled to up to an extra $1,080 back in tax!
- For students, the $250 threshold is to be removed on eligible self-education expenses, meaning all expenses are now tax deductible (these used to be reduced by $250).
Investing in women
- This Budget includes a $3.4 billion (yep!) package for women! Most of this money will be go to reducing the cost for families to keep their kids in care, including removing the subsidy cap for higher income earners.
- Much-needed money will also go to family violence support services and helping women who are fleeing family violence (this includes a cash payment of $1,500, and $3,500 in goods).
- There will be an investment in scholarships for women in science, technology, engineering, and maths.
Better health
- The global pandemic has had huge impact on mental health. The Australian Government is focussing on improving their digital mental health services and will invest money in Headspace and Head to Health mental health centres across the country.
- There’s also extra funding for sexual and reproductive health services, care for people following a suicide attempt, fly-in-fly-out workers, pregnant women, and new mums. There are also new medications added to the Pharmaceutical Benefits Scheme to support people with Dravet Syndrome, ADHD, severe eczema, osteoporosis, and chronic migraines.
Housing
- There’ll be Government support for another 10,000 first home buyers to build a new home with just a 5% deposit and it’s anticipated that 10,000 single parents will be supported to purchase a home with just a 2% deposit.
- The First Home Super Scheme will increase to $50,000 (previously $30,000). This allows eligible first home buyers to make pre-tax voluntary contributions into their super and use these funds later for a home loan deposit. The benefit here is that you pay less tax while saving for your first home.
- There will also be allowance for people over 60 to contribute up to $300,000 into Super from downsizing their home, in an effort to free up more real estate for younger families.
So there you have it. If you’re looking for more, check out the ATO website!
Fine print: Some of these changes are still making their way through the legal red tape and may not be reflected on the site just yet.