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Andrew Williams

Federal Budget- Key retirement and financial planning related items

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Overnight, the Federal Government handed down its annual budget.

 

It contained the following key points related to retirement planning:

 

  • further increasing Age Pension age to 70 by 1 July 2035
  • indexing pensions to CPI, rather than wages, from 1 September 2017
  • resetting deeming thresholds to $30,000 for singles and $50,000 for couples from 20 September 2017
  • freezing Income and Assets Test thresholds for Government pensions including Age and Service Pensions from 1 July 2017
  • including untaxed superannuation income in the Income Test for the Commonwealth Seniors Health Card for new recipients from 1 January 2015.

 

 

Other significant financial planning-related items were:

 

  • introducing a 2% Temporary Budget Repair Levy on incomes over $180,000 for three years from 2014-2015
  • maintaining SG contributions at 9.5% for three years from 1 July 2014
  • allowing individuals to withdraw contributions in excess of the non-concessional contributions cap from 1 July 2014
  • tightening the eligibility for Family Tax benefits.

 

 

 

Other items were:

 

 

  • Abolition of Mature Age Worker Tax Offset
  • Abolition of Dependent Spouse Tax Offset
  • Increasing the Medicare levy low-income threshold for families
  • Seniors Supplement abolished
  • Disability Support Pension changes regarding recipients time spent out of Australia
  • First Home Saver Accounts to be abolished
  • Higher Education Loan Program (HELP) reduction to income threshold

 

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