Visit our website Share this Archives Feedback

2015 Federal Budget Analysis

Good Morning,

Last night's budget was largely as expected.  As is becoming the norm these days, many of the big announcements were made public in the week prior, leaving not many surprises.  The important consideration is that many of the initiatives outlined last night rely on the support of the other players in the senate. The good news is that with the implosion of the Palmer United Party voting block, there will most likely be more traction for getting these initiatives into law.

There were many winners last night but perhaps the area where many of our clients will feel the impact is the change to the taper rate for the Assets Test for Age Pension eligibility either by way of increased benefits, or reduced benefits.  Across Australia, it is anticipated that the move to reduce the cut out asset test figure for age pension will mean that 91,000 people currently getting a part pension, will lose the benefit.  The change in threshold for couples will be reducing from $1.15 Million down to $823,000 and for singles from $775,000 down to $547,000.  Importantly, though these people may lose the pension, they will retain the Commonwealth Seniors Health care card and access to the ancilliary benefits.

There is good news for those with more modest levels of assets.  Approximately 170,000 pensions not currently receiving the full pension will now get more due to the assets test rate at which pension reductions start increasing for singles from $202,000 to $250,000 and for couples from $286,000 to $375,000.

If you note that there are more people likely to benefit than lose from these changes, you can come to just one conclusion- there must be an election in the air!

I have included more knowledgeable commentary below.  For those that would still like to support my bike ride for Multiple Sclerosis, here is the link. 

http://msqldevents.com.au/champion/MS-Brissie-to-the-Bay-2015/SteveNielsen

MLC’s Senior Technical Manager, Peter Hogan, provides a breakdown of the Federal Budget, including an overview of the key measures and their likely impacts.  Please call us if you want to discuss anything pertaining to the budget.


2015 Federal Budget summary video

Regards,
Steve Nielsen, AdFS, B.Com, MBA, FFin, AFA

Principal, Authorised Representative
Contact us
Phone
(07) 3343 9228
Fax
(07) 3343 9222
Email
Email Us
Website
Ascent Wealth Management
Address
Room 3, Corporate House, Building 6,
Garden City Office Park,
2404 Logan Road,
Eight Mile Plains QLD 4113
Register | Feedback
Ascent Wealth Management Pty Ltd, Stephen Nielsen and Gavin Hammond are Authorised Representative of GWM Adviser Services Limited, ABN 96 002 071 749, AFSL number 230692 an Australian Financial Services Licensee, Registered office at 105-153 Miller Street, North Sydney, NSW, 2060 and a member of the National Australia Group of companies.

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax and/or legal advice prior to acting on this information. The material contained in this newsletter is based on information received in good faith from sources within the market, and on our understanding of legislation and Government press releases at the date of publication, which are believed to be reliable and accurate. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this email.