From what I've so far read, there's not much to excite in this year's Federal Budget. In a way, that's quite nice - steady as she goes. But do Julia and Wayne have something up their sleeve to rock the boat (or dig the knife in)?
Two items of important note for our clients:
Contribution caps for over 50’s
There will be a change to the previously announced concessional contribution cap for those over 50 with a superannuation account balance of less than $500,000 (with effect from 1 July 2012, when the current transitional arrangements end). Instead of a cap of $50,000, the cap will be $25,000 over the ‘general’ concessional contribution cap and so will increase in line with the increase of the general cap. No further clarity has been provided as to how this will be implemented.
Account based pension minimum draw downs
The Government will phase out the pension drawdown relief that has been provided over the last three years. Minimum payment amounts for account-based, allocated and market linked (term allocated) pensions will be reduced by 25% for 2011-12 and will return to normal in 2012-13.

If you would like more information, or would like to know how any of the budget measures impact your financial future, contact us on 02 9417 6011 today.