Federal Election 2022 – what could this mean for you?
A number of changes were proposed by the Government during the election campaign, and support was also announced for a number of proposals made by the previous Government.
So where do things stand, what’s next, and how could these proposals impact you? Below is a summary of some of the key announcements to date, and the opportunities which may exist.
Proposals at a glance
Social security measures
– The Government has committed to freezing deeming rates for two years until 2024. This may benefit you if you’re receiving an income tested pension or allowance, or are a concession card holder. While the deeming rates are subject to periodic change, the current deeming rates have been in effect since 1 May 2020.
– The Government has proposed to extend the existing 12 month exemption that applies if you’re a social security recipient, and you sell your primary residence. The exemption applies to a certain potion of the sale proceeds of your home under the assets test. The proposal is to extend the exemption for an additional 12 month period.
– The Commonwealth Seniors Health Card (CSHC) may be available to you if you’ve reached your Age Pension age, but don’t qualify for the Age Pension due to the income and/or assets test. The CSHC has an income test which is used to determine eligibility for the card. It is proposed that the income test eligibility thresholds will be increased as below:
– The Regional First Home Buyer Scheme is proposed to provide support for 10,000 first home buyers to purchase a home in regional Australia. The Government will guarantee up to 15% of the eligible purchase price which would allow mortgage insurance to be avoided.
– The Government has proposed to introduce the Help to Buy scheme, which is a shared equity scheme. Support will be available for up to 10,000 people each year. If you’re eligible, the scheme will provide support for up to:
– 40% of the purchase price of a new home, and
– up to 30% for an existing home.
– The eligibility age for downsizer contributions is already legislated to be reduced from 65 to 60 from 1 July 2022. Downsizer contributions allow eligible individuals to contribute some or all of the proceeds of the sale of their home to superannuation, without impacting other contribution caps.
It is important to remember that at this time, these proposals are not yet law. You should not act on any of these announcements until they are legislated, or take effect. It is also important to speak to your financial adviser for more information about the changes and to understand how they may provide opportunities for you.
Note – This communication does not take into account your objectives, financial situation or needs. Please seek personal advice before making a decision about a financial product. Information in this document is current as at 21 March 2022. No liability or responsibility is accepted by Collective Wealth Advisers or any of its employees of Collective Wealth Advisers, for any loss arising from reliance on this communication.
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- May 26 2022