For those of you that have been affected by the floods our thoughts are with you. We’ve put together a list of Flood Support that you may be able to access for both personal and business purposes. Having an office in Northern NSW we truely understand the impacts of this event.
In other news we’ll discuss the expansion of Superannuation guarantee payments to more employees and the First Home Buyer Super Scheme. The CGT discount increase for community housing is also on our radar this month
Flood Support
With one of the biggest natural disasters Australia has seen both State and Commonwealth governments have put together flood support packages for individuals and businesses that have been affected. The Australian Government has announced payments for both SE QLD and NSW residents affected by the floods. These payments are dependant on your Local Government Area.
Services Australia Flood Assistance
NSW Government
The NSW Government has announced a number of different grants support services for both individuals and businesses.
– Disaster Relief Grant
– Rental Support packages
https://www.nsw.gov.au/floods/financial-support
– Small business recovery grant – up to $50,000
Applications are via Services NSW:
February and March 2022 storm and flood disaster recovery small business grant
QLD Government
The QLD Government has a number of different grants and support services for Qld individuals and businesses affected.
The Personal Hardship Assistance Scheme includes such things as Emergency and Essential services hardship assistance
Business assistance include Recovery grants for businesses affected of up to $50,000
Disaster Assistance loans up tp $250,000
https://www.qld.gov.au/alerts/i-need-help/floodhel
Superannuation News
Removing the $450 per month threshold for super guarantee eligibility
On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced it will remove the $450 per month threshold to expand coverage of Super Guarantee to eligible employees regardless of their monthly pay.
From 1 July 2022, employers will be required to make Super Guarantee contributions to their eligible employee’s super fund regardless of how much the employee is paid. Employees must still satisfy other Super Guarantee eligibility requirements.
First Home Super Saver Scheme – increasing the maximum releasable amount to $50,000
On 11 May 2021, as part of the 2021–22 Federal Budget, the Australian Government announced it will make changes to the First Home Super Saver (FHSS) scheme to increase the contributions that can be counted towards the maximum releasable amount to $50,000 and improve the operation of the scheme.
From 1 July 2022, eligible individuals will be able to include contributions up to $50,000 (currently $30,000) in the maximum releasable amount. Eligible contributions made from 1 July 2017 can count towards the total amount released.
Not all super contributions count towards the First Home Super Saver Scheme. Only voluntary super contributions, plus earnings as calculated by the ATO.
These include – Salary Sacrifice and After Tax Contributions
If you’d like to discuss how we can help please contact us today.
CGT Discount Increase for Affordable Rental Housing
When you sell or otherwise dispose of an asset, you can reduce your capital gain by 50%, if both of the following apply:
-You owned the asset for at least 12 months
-You are an Australian resident for tax purposes.
There is an additional CGT discount of up to 10% for Australian individuals who provide affordable rental housing to people earning low to moderate income.
This increases the CGT discount to up to 60% for owners of these residential rental properties.
To be eligible for the 60% CGT discount your property must be managed by a community housing provider and meet other eligibility criteria.