Daily Bulletin

Money

  • Written by Jeff Coote


FPA welcomes tax cuts for low to middle-income Australian households, more super flexibility, and post-Royal Commission clean-up funds

 

The Financial Planning Association of Australia (FPA) welcomes measures to bring forward tax breaks for low and middle-income workers, introduce greater flexibility into the superannuation system, and an ongoing investment in reducing misconduct in financial services.

 

FPA CEO, Dante De Gori CFP® said: “The budget is now projected to be in surplus from the 2019/20 and the tax breaks will mean low and middle-income workers earning between $48,000 and $90,000 will be eligible to receive $1,080 on top of tax relief they received last year through an extension of the Low and Middle Income Tax Offset.

 

““The proposed tax cuts along with Treasury estimates that 94 percent of Australians will not pay more than 30 cents in the dollar in taxes will have a positive impact on the financial health of many, many Australians and ease short-term cost of living pressures.

 

“That said, Australians on lower incomes continue to find it hard to save for their retirement. We would have liked to see this budget address the need for a Low Income Superannuation Contribution Scheme in addition to the tax concessions, to boost retirement saving potential and in turn, reduce future pressure on the age pension and support better financial futures for all Australians,” said Mr De Gori.

 

Right steps in superannuation

 

The FPA welcomes proposed changes to the superannuation system to improve flexibility for older Australians, but believes more detail is required to close the persistent gender gap in retirement savings. 

 

“It has become harder and harder for Australians to understand and add money to their superannuation. We welcome the flexibility which will be provided from July 2020 for people aged 65 and 66 to contribute to super without meeting the work test of 40 hours over a 30-day period. This will greatly assist Australians in preparing for the upcoming rise in age pension eligibility to 67 from 2020-21,” Mr De Gori said.

 

The notable increase in the age limit for spouse contributions to super from 69 years to 74 years will be of particular advantage to women. At present, people aged 70 and over cannot receive third-party contributions.

 

"The FPA notes Australian women are still at an enormous disadvantage when it comes to superannuation, and we're disappointed not to see more measures to address the gender retirement gap in this Budget than increasing the spouse contribution age limit. In 2019, women still have a substantially different experience of retirement than Australian men. The retirement framework should be equitable for all Australians,” Mr De Gori said.

 

FPA welcomes post-Royal Commission clean-up budget

 

“The FPA broadly supports the Government’s plan to implement the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recommendations over the next five years. However the $606.7 million required will primarily be recovered from ASIC’s industry funding model and will add to the significant increases in advice costs to the mums and dads of Australia.

 

“We believe implementing the Royal Commission recommendations is necessary for the protection of consumers, but are concerned by how much it will cost,” said Mr De Gori.


The Conversation

Politics

Backing Australian business, jobs for the US Moon to Mars Mission

The Morrison Government is positioning Australia for lift-off with a $150 million investment into our local businesses and new technologies that will support NASA on its inspirational campaign to re...

Scott Morrison - avatar Scott Morrison

Prime Minister - Ceremonial Welcome, White House - Washington DC

As I just said to the President, thanks mate.   Mr President, Mrs Trump, honoured guests, distinguished guests,, friends one and all, here in this land of liberty. Thank you Mr President and Mrs T...

Scott Morrison - avatar Scott Morrison

Prime Minister interview with Deb Knight

WEDNESDAY 18 SEPTEMBER 2019   DEB KNIGHT: Prime Minister Scott Morrison has launched a 12 month inquiry. He joins us now from Canberra. Scott Morrison, Good morning to you.   PRIME MINISTER: ...

Scott Morrison - avatar Scott Morrison

Business News

Ways to Take Control Over Your Startup's Public Image

The way in which others see your business only seems like something that you have no control over. After all, it’s their own subjective matter, right? Well, the concept of branding represents a sc...

Diana Smith - avatar Diana Smith

How Digital Futures Platforms are Changing it All

Some people still remember the days when you had to be in one of the world’s centers of finance in order to be able to trade with futures. Technology has developed a lot since then and trading wit...

Diana Smith - avatar Diana Smith

Your Ultimate Guide on Making an Office Cleaning Checklist

A cleaning list is simply a list that guides cleaners on what should be done. Several factors determine the type of cleaning list for your business premises.  The cleaning checklist usually provided ...

Clean Group - avatar Clean Group

Travel

Essential Tips When Planning a Trip in the USA

Everyone has their dream destination. It could be a memorable place because of their parents, a destination to be ticked off in the bucket list or a place to find yourself. If your dream destination...

News Company - avatar News Company

Travelling Tips and your Roots: Who’s Looking out for Home?

If you lead a life of travel, chances are you know that not everyone gets the same kick out of living as a nomad. Today we focus on those ‘left behind’ – how do you nurture the valuable people in yo...

News Company - avatar News Company

TOURISM NT LAUNCHES NEW BRAND

New tagline revealed, new campaign set to launch ‘Different in every sense’ will replace Tourism NT’s ‘Do the NT’ tagline from today as part of a new brand positioning aimed at attracting more vi...

Matthew Ongarello - avatar Matthew Ongarello

ShowPo