On 29 May 2021, the Morrison Government announced that the temporary 50% reduction in the minimum amount superannuation pension members were required to withdraw from their pension account will be extended to 30 June 2022.
As part of their economic response to the Coronavirus pandemic, the Government introduced a temporary 50% reduction in the minimum amount members were required to withdraw from their pension account. This temporary reduction was expected to finish on 30 June this year, but has now been extended to 30 June 2022. If you are currently receiving the reduced minimum, you will continue to do so for the 2021-22 financial year unless you provide alternate instructions.
The reduced pension rates are shown in the table below (these rates will now apply for the 2021-22 financial year):
If you wish to review or alter your pension amount, please contact your adviser.
The economic, financial, physical, mental and emotional issues that have arisen due to the COVID-19 pandemic—which immediately followed the devastating bushfires and drought—have undoubtedly been felt by many of us. The Government’s recently delivered 2020-21 Federal Budget aims to focus on rebuilding our economy, creating jobs and securing Australia’s future, with the Government’s ‘COVID-19 Economic Recovery Plan’.
In previous years, the Budget has traditionally been delivered in May, though due to the COVID-19 pandemic, it was delayed and Treasurer Josh Frydenberg delivered the 2020-21 Budget on 6 October 2020.
To read more about the Federal Budget and what it means for you, please access this Federal Budget Report.
Please contact us to discuss any questions you have about the budget and what it means for you.
Change has the potential to impact our financial situation, goals and objectives. When this occurs, it’s important to assess the relevance and potential impact—then plan and act accordingly.
A new financial year can mean change—thresholds and rates can increase (or decrease), and legislation can take effect.
Below is a summary of the most notable changes occurring from 1 July 2020 across superannuation, employment, social security and taxation. For a full write up of all changes, please see the original article posted on The Wealth Mentoring Group’s Financial Knowledge Centre on 14 July 2020. Continue reading “1 July 2020: Change in the new financial year”
The COVID-19 pandemic has undoubtedly changed the world as we know it. And, while this event is first and foremost a public health issue, other clear and significant issues have also emerged for many of us, be they economic, financial, physical, mental and/or emotional.
While there appears to be some light at the end of the tunnel, and restrictions are gradually being wound back, uncertainty and caution remain—which is an understandable human response.
What we have experienced, and continue to work through, is something truly unique in terms of its overall size, reach and impact. The world grounded to an almost halt, and we were placed in unfamiliar and surreal territory.
What we do know, these changes have affected us on many levels, both temporarily and in some cases permanently. Our strengths and weaknesses, our opportunities and threats, and our values and priorities have been tested. And, with this, some things may revert back to normal, and others may not.
Although there have been many negatives from this event, perhaps one positive has been the opportunity to pause and reflect. By doing so, we have gained insights and learnt lessons about ourselves, which can be used to move forward in a positive direction.
There are different types of Powers of Attorney you can nominate, but the two main ones are a Medical Power of Attorney (also known as a guardianship) and an Enduring Power of Attorney. A Medical Power of Attorney gives another person authority to make decisions about your medical treatment if you’re not physically or mentally able to choose for yourself. An Enduring Power of Attorney (PoA), gives someone the legal authority to manage your financial affairs when you’re unable to do so.
Why would I need a Power of Attorney?
Having a PoA organised is important in case you lose capacity make decisions about your finances through medical reasons, such as age, injury or illness. It can also be worthwhile to organise a PoA if you plan on living or travelling overseas for an extended period of time. Continue reading “What is a Power of Attorney?”
Self-managed superannuation funds (SMSFs) continue to be popular amongst many investors but ASIC has warned the individuals need to be aware of the potential downside to establishing an SMSF that may be inappropriate for their circumstances.
ASIC Commissioner Danielle Press said:
‘SMSFs may be an attractive option for investors wanting more control over their superannuation investment strategy, but it requires real skill, care and diligence to manage your own superannuation. SMSFs are not for everyone simply because not everyone can meet the significant time, costs, risks and obligations associated with establishing and running one.’
One of our advisers, Raquel Netto, was recently featured in the Financial Planning Association’s Money & Life Magazine.
It’s a great article highlighting Raquel’s achievements, including winning the Gwen Fletcher Memorial Award for being the highest achieving student in the Certified Financial Planner Certification unit. Raquel discusses the growing role of women in business, the importance of higher education standards in the financial planning profession, study advice, her personal work ethos and the demands of juggling a career, family and study.
Raquel approaches work, study and personal endeavours with the same enthusiasm and drive for excellence.
“My personal value system means that for any project or challenge I take on, I give it 100 per cent, because if I’m not going to give something my very best effort, then I shouldn’t be doing it.”
Drawing on her personal experiences, Raquel’s advice to others is that
“through hard work and by having a positive attitude, you will be able to achieve anything you set your mind to. Always believe in yourself and trust your own judgement.”
It’s a new financial year, which means changes in rates and thresholds, as well as changes in legislation. This article focuses on the stay of play from 1 July 2019, with particular emphasis on three key personal finance areas: employment, social security, and superannuation.