Five changes that affect your finances

Five changes that affect your finances

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class = “image-source”> Source: National features

Incentives for savings and superannuation budget took a beating last week, forcing investors and consultants to take a look at their strategies.

Treasurer Wayne Swan got an ax to some planned measures as he turned a large deficit in a slim profit.

Here are five key changes that affect our personal finances.

a reward for saving

leftovers budget proposed 50 percent income tax deduction of interest earned up to $ 1000.

RaboDirect CEO Greg McAweeney says it is disappointing that the government broke its promise.

“The 5.7 million depositors, which was set to benefit from the discount has been short-changed,” he says.

Prescott Securities adviser Helen Dundon says the case for the tax break has been less important in recent years as the Aussies began to save more anyway.

Farewell tax deduction

Plans for a discount of 500 standard for all employees has been canceled. It would have given money and time savings for people with basic tax returns, and was scheduled to begin on July 1 and increase in $ 1000 in July next year.

Dundon suggests IT-savvy taxpayers with basic needs to see Australian eTax SFS free service. “It’s very easy to use and what steps you through your tax return,” she says.

super slow Lane

concessional super contributions cap of $ 50,000 for people aged over 50 years will be halved from 1 July a move that sparked anger from super sector. “This is a real shame,” Dundon says the delay. “Everything has already been turned on its head.”

investors should be sure that they can still make great non-concessional contributions to super – up to $ 450 000 in a three-year period – if they want to increase their nest egg quickly. Head

Mercer financial advice, Jo-Anne Bloch, said people can beat the new cap to maximize their contribution before 30 June.

hit for high income

flagged a couple of weeks ago, this measure reduces the excess tax concessions to those people with high incomes – those of $ 300,000 per year or more – to accept super contributions. It is politically wise, because nobody can argue breaks were more deserving than other taxes.

Dundon says the implementation of this will be difficult. “Superannuation funds do not know that the income of people who contribute,” she says.

OTHER MEASURES Robin Hood

Other cuts in the budget are forced to live away from home help, means testing for net medical expenses tax offset, and rules Strict tax on golden handshake.

Dundon says that if you’re expecting a big pay employer, try to time it so it comes in a year when you do not earn high incomes.

Bloch says the winners higher incomes will be hit hard by July 1 of the Budget and other measures, including private health insurance rebate cut.

“It’s just an abundance of tests of different means that people have to work their way through,” she says.