Andrew from Vista Financial

Federal Budget- Key retirement and financial planning related items

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    Overnight, the Federal Government handed down its annual budget.

     

    It contained the following key points related to retirement planning:

     

    • further increasing Age Pension age to 70 by 1 July 2035
    • indexing pensions to CPI, rather than wages, from 1 September 2017
    • resetting deeming thresholds to $30,000 for singles and $50,000 for couples from 20 September 2017
    • freezing Income and Assets Test thresholds for Government pensions including Age and Service Pensions from 1 July 2017
    • including untaxed superannuation income in the Income Test for the Commonwealth Seniors Health Card for new recipients from 1 January 2015.

     

     

    Other significant financial planning-related items were:

     

    • introducing a 2% Temporary Budget Repair Levy on incomes over $180,000 for three years from 2014-2015
    • maintaining SG contributions at 9.5% for three years from 1 July 2014
    • allowing individuals to withdraw contributions in excess of the non-concessional contributions cap from 1 July 2014
    • tightening the eligibility for Family Tax benefits.

     

     

    Other items were:

     

    • Abolition of Mature Age Worker Tax Offset
    • Abolition of Dependent Spouse Tax Offset
    • Increasing the Medicare levy low-income threshold for families
    • Seniors Supplement abolished
    • Disability Support Pension changes regarding recipients time spent out of Australia
    • First Home Saver Accounts to be abolished
    • Higher Education Loan Program (HELP) reduction to income threshold

    Edited by Andrew from Vista Financial

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    Guest Guest12727

    I don't understand all the terminology around this, but is there anything good there?

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