Parliament has passed new legislation that will help Australians get into their own home and drive investment.
The bill, Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021, will support first-home buyers by increasing the maximum amount of voluntary contributions that could be released under the First Home Super Saver Scheme (FHSSS) from $30,000 to $50,000.
The bill will also reduce the eligibility age for making downsizer contributions into superannuation, from 65 to 60 years old. This will allow more older Australians to consider downsizing to homes that better meet their needs, increasing the supply of larger homes for young families.
The bill also supports businesses to invest and grow by extending the government’s temporary full expensing regime by 12 months to June 30, 2023. The measure allows businesses with aggregated turnover of less than $5 billion to claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use for a taxable purpose.
These business incentives will provide businesses more than $50 billion in tax relief and support around $320 billion worth of investment. This has resulted in a significant upgrade in the investment outlook, with new business investment forecast to jump 16% over the next two years at its fastest rate since 2011-12 during the height of the mining investment boom.
The bill and explanatory material are available on the Parliament of Australia website.
