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Royal Commission superannuation hearings - Live Coverage:

How will you spend your $530 offset?

Cash, money, spend

You could pay your rego, as Scott Morrison suggests, use it on cheaper pensioners’ movie tickets, or, as an investment bonds expert suggests, invest it in your future.

The head of Centuria Life, Michael Blake, said the proposed $530 offset may seem modest, but should be approached as an opportunity to save.

The 2018-19 budget, handed down on Tuesday night, came with tax cuts of up to $530 a year for low and middle-income earners.

That equates to roughly $10 a week, but it’s not to be sneered at, Mr Blake argued.

“$500 is enough to invest in a vehicle such as an investment bond, and reap the benefits in the future.

“As the Treasurer has pointed out, retirement income should be a priority for all Australians, and we all have other important interim long-term financial goals we continue to aim towards, that make all the difference to Australian lives.”

Continuing, he said set-and-forget vehicles like investment bonds are highly tax-effective given they are taxed at the 30 per cent company tax rate and should be considered by investors.

“Vehicles like investment bonds that offer the advantages of compound interest are flexible – allowing for additional contributions each year and access to the funds at any time – and offer very low barriers to entry, continue to be great complimentary options to super that people should consider in this environment.”

Check out Nest Egg's five minute recap of the 2018-19 budget here

How will you spend your $530 offset?
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