Retirement
Top promises for investors in this year’s federal budget
The Morrison government promises tax cuts, free cash and a stronger set of national accounts. Here’s the main takeaways for Australian investors from the federal budget.

Top promises for investors in this year’s federal budget
The Morrison government promises tax cuts, free cash and a stronger set of national accounts. Here’s the main takeaways for Australian investors from the federal budget.

Income tax cuts
Those earning up to $126,000 will receive tax cuts under a Liberal government.
The bulk of the relief will be for those in the middle income bracket of $48,000 to $90,000. These taxpayers will have their tax reduced by up to $1,080 for single earners or up to $2,160 for dual income families. This is applicable from 1 July this year.
The Treasurer also promised to reduce the 32.5 per cent tax rate to 30 per cent in 2024-25.
The Morrison government estimates around 13.3 million taxpayers will pay permanently lower taxes in 2024-25 as a result of its package of tax changes.
Super sweeteners
The biggest wins for superannuation were announced just before the budget and confirmed in its budget papers.
These measures allow greater flexibility around making contributions to superannuation for older Australians.
BDO partner for business services Chris Balalovski noted that the measures were limited to individuals who are 65 and 66 years old, which means only an additional two years in age increment in respect of two of the measures and up to age 74 in respect of another.
“There aren’t too many individuals in Australia who will satisfy the criteria and who have the available money to be able to make the contributions at that point in their life,” he said.
“So, it’s very welcome and a step in the right direction with flexibility in super, but it only applies to a limited group.”
Cash handouts
As part of its plans for energy and the environment, the Morrison government is promising cheques in the mail for certain taxpayer demographics.
According to the budget papers, the government is promising to provide $284 million for a one‑off, income tax exempt payments.
This will result in a hand-out of $75 for singles and $125 for couples for about 3.9 million Australians who are on eligible social security payments.
This hand-out is intended to assist with the cost of power.
Is the surplus a win?
Deloitte Access Economics’ Chris Richardson pointed out that a surplus budget is not necessarily a sign of a healthy economy.
“The economy is getting better, but the budget is getting worse,” he said in the lead up to the budget’s release.
In fact, Australia has been in a per capita recession for the last two quarters for the first time since 2006, according to the estimations of AMP Capital chief economist Shane Oliver.
It is also important to note that the surplus has yet to be delivered.
The government is touting it’s “back in the black,” which will be true for the 2019-20 financial year, if the surplus materialises.
As it stands, Australia remains in the red and will finish this financial year in deficit. The surplus forecast is reasonable and supported, but it is just that: a forecast.

Retirement Planning
New govt called on to improve retirement and super systems
The organisation has called for action from the new government. ...Read more

Retirement Planning
Aged care v retirement village: Which is better?
What is the difference between aged care and retirement villages? Aged care facilities provide retirees with accommodation that has daily medical and personal care services. Retirement villages allow...Read more

Retirement Planning
Aussies lag on retirement optimism
Australians are mostly looking up when it comes to leaving the workforce, but they lag behind their counterparts. ...Read more

Retirement Planning
1 in 2 Aussie retirees now expect their savings to outlast them
Those nearing retirement are starting to ask the right questions. ...Read more

Retirement Planning
Less than half of super fund members expect a comfortable retirement
The older you are, the more likely you are to feel optimistic about retiring from the workforce. ...Read more

Retirement Planning
Is it time for retirees to retire the 4% rule?
New economic realities are challenging long-held assumptions about how retirees should tap into their wealth. ...Read more

Retirement Planning
Modern retirement means more than just spending time with the grandkids
How are today’s retirees really spending their time and money? ...Read more

Retirement Planning
Retirement costs spike at the fastest rate in over a decade
Retirees have been hit hard by higher living costs, including fuel prices and property rates. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Retirement Planning
New govt called on to improve retirement and super systems
The organisation has called for action from the new government. ...Read more

Retirement Planning
Aged care v retirement village: Which is better?
What is the difference between aged care and retirement villages? Aged care facilities provide retirees with accommodation that has daily medical and personal care services. Retirement villages allow...Read more

Retirement Planning
Aussies lag on retirement optimism
Australians are mostly looking up when it comes to leaving the workforce, but they lag behind their counterparts. ...Read more

Retirement Planning
1 in 2 Aussie retirees now expect their savings to outlast them
Those nearing retirement are starting to ask the right questions. ...Read more

Retirement Planning
Less than half of super fund members expect a comfortable retirement
The older you are, the more likely you are to feel optimistic about retiring from the workforce. ...Read more

Retirement Planning
Is it time for retirees to retire the 4% rule?
New economic realities are challenging long-held assumptions about how retirees should tap into their wealth. ...Read more

Retirement Planning
Modern retirement means more than just spending time with the grandkids
How are today’s retirees really spending their time and money? ...Read more

Retirement Planning
Retirement costs spike at the fastest rate in over a decade
Retirees have been hit hard by higher living costs, including fuel prices and property rates. ...Read more