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The 2015 Federal Government Budget address has been delivered in Canberra overnight. Whilst there are a myriad of discussion points stemming from this address, this summary is focussed on the major changes to individual and family personal finances grouped into three main areas – tax planning, government benefit planning and retirement planning.
SUMMARY OF MAJOR STRATEGY CONSIDERATIONS
The key strategy consideration coming out of this year’s budget is for Age Pension recipients along with those who might receive Age Pension benefits in future years . Careful considerations needs to be had in terms of strategies that will reduce asset test levels. We look forward to discussing this with relevant clients over the course of the next few months.
Overall the budget has provided a number of changes in terms of personal finance outcomes that need to be carefully considered.
A pleasing aspect is that the government has again chosen not to tamper with the superannuation system in this budget.
Investing through superannuation to provide for retirement therefore remains a very effective strategy with:
- Compulsory employer contributions
- Tax advantaged contributions and earnings through the accumulation stage, now at slightly higher concessional contribution rates for older superannuation account members
- Tax free superannuation withdrawals after the age of 60
- Minimal rules for withdrawing superannuation
If you would like to discuss any of the details contained in the budget and how those details impact your situation please do not hesitate to be in contact.
This document has been prepared as a brief summary of the 2015 Federal Budget as it impacts on personal finances. It is a publication of A Clear Direction Financial Planning. It contains general financial information. Readers should check this information with a professional financial adviser before acting on any of the material contained in this document.