Summerhill Financial Services, based in Australia, provides of financial planning services to help build, manage and protect your wealth.
Taken at the Pink Palace at Monaco in September 2004
Changes across tax, super and Centrelink were announced today as part of the Government’s Mid-Year Economic and Fiscal Outlook (MYEFO). With a need to find cost savings, some concessions have been cut and others deferred for another year.
A summary of new announcements is outlined below. These measures are proposals and legislation still needs to be introduced. (more…)
Further budget tightening announced by the Government today in the Mid-Year Economic and Fiscal Outlook strikes another blow to reduce the effectiveness of the superannuation co-contribution scheme.
It is proposed that from 1 July 2012 the co-contribution matching rate will be reduced from 100% to 50% with a maximum co-contribution of $500. This means eligibility will cut-out for people on adjusted taxable income of $46,920.
It is an incentive to make use of your full entitlement this financial year (before 30 June 2012).
In recognition of the ongoing volatility in markets and the effect this has on retirees, the Government has announced a further extension on the reduction of the minimum payments from account-based pensions. The standard minimum payment factors will continue to be reduced by 25% throughout 2012/13, and so will be the same percentages that apply in this financial year.
The new super rules have rendered employer-provided life insurance plans nowhere near as friendly as they previously were. And a new $140,000 tax-free cap is vastly inadequate.
An article in the Australian Financial Review’s ‘Smart Money’ section in October discussed the merits of salary sacrificing super. Summerhill’s Caroline Bell was quoted.
Nearly 80% of people consider super the ‘main nest egg’ for retirement, yet only a third of those over 50 think they will be self sufficient once they leave full-time work.