Invest
An election budget that leaves a little to be desired
Modest tax breaks are in; boosted housing affordability measures are out. It is an election budget, after all.
An election budget that leaves a little to be desired
Modest tax breaks are in; boosted housing affordability measures are out. It is an election budget, after all.
In addition to the tax offsets, the 2018-19 budget brought a number of measures allowing older Australians to save more money in retirement.
However, this is down to two things. An election due early next year, and the sheer number of Baby Boomers entering retirement, acting CEO at NGS Super, Laura Wright has said.
“You always have to see these things in terms of the context of an election and also the context of the realities of the Australian population,” Ms Wright said.
“We know that there's going to be a huge increase in the number of older Australians and so I think some of these measures are making it easier for older Australians to have more money, not only from the pension but also the Pension Work Bonus and Pension Loans Scheme.”
Mr Wright argued that this gives older Australians the ability to improve their lifestyles in retirement, which will have flow-on economic benefits.
Retirees’ spending will increase as their disposable income does, she theorised.
“There's probably a multiple number of reasons why these measures are there but quite clearly I think, unfortunately when it's a pre-election budget, you always look through the lens of that,” Ms Wright said.
“Generally, people would assume that Coalition supporters are more likely to be in that [Baby Boomer] age group but I think that's balanced with the fact that there are more people in that age group.”
This means more policies need to be created to meet their needs.
‘That doesn’t go very far, in terms of the backlog, but it’s better than nothing’
The $1.6 billion pledged to funding 14,000 more home care packages sounds impressive, but over four years equates to 3,500 places and $400,000 a year.
“That doesn't go very far in terms of the backlog but it's better than nothing,” said Ms Wright.
She would have liked to have seen more initiatives addressing the gender gap in superannuation, and the underlying issues like earnings differences and unpaid superannuation during parental leave.
However, she did applaud the tax cuts, arguing that anything which helps low income earners will also help the many women and young people who are low-income earners.
“Generally I think it's geared to a much older age group. There didn't seem to be very much in here, particularly for young people, although some could say that the tax cut will benefit younger people because they're going to be starting in the workforce and in the lower income, so from that perspective, you could say there's that,” said Ms Wright.
“But it's a bit of a mixed bag.”
RELATED ARTICLES
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
