iStock_000003981161XSmallContribution cap to remain at $25,000 for everyone regardless of age or balance until 2014

The decision not to raise the concessional contribution beyond $25,000 from 1 July 2012 for individuals over 50 is disappointing and will make it harder for most people approaching retirement, or individuals with broken working patterns, to adequately save for retirement. It is worth remembering that the concessional cap for individuals over 50 was initially $100,000 when the caps first commenced on 1 July 2007.

30% contributions tax

For those earning over $300,000 p.a., contributions will be taxed at 30% as opposed to the current 15%.

Education Expenses

Rather than keeping your receipts and claiming education expenses at tax time, the government has announced that those in receipt of Family Tax Benefit Part A will receive the Education Refund automatically, $410 for each primary school child and $820 for each secondary school child.
A word of warning, as this is not yet legislated, we recommend keeping existing receipts until this is passed.
For those of you who are clients and are affected by these changes, your financial adviser will be speaking with you over the coming weeks.
In the meantime, if you have any questions about how the 2012 Budget will affect you in your specific circumstances, please contact us.
Please note, this information was current at the time this article was published. Check in with us to get an up-to-date picture by booking a free, no obligation consultation with one of our experienced financial advisers. Schedule your consultation today.
2018-01-22T08:14:37+00:00 May 23rd, 2012|