The FirstTech team shares their analysis of the Federal Budget measures in an overview video and detailed briefing paper. Plus, you can join a webinar to find out more.
00:00:04:16 - 00:00:23:09
Unknown
Okay we’ve just emerged from CFS’s first Federal Budget lockup. And I have to say the most interesting thing about the budget was what actually wasn't in it. And that relates to there was no announcement in terms of extending the halving of the pension minimum. So therefore, from the 1st of July, a lot of your clients may actually need to increase their account base pension payments.
00:00:23:14 - 00:00:42:23
Unknown
So you need to be in contact with them and help them through. Also, in the lead up to the federal budget, there's a lot of speculation about whether the transfer balance cap would be frozen its current level of $1.7 million. Absolutely no announcement about that. So from that, we take that the transfer balance cap will be increasing to $1.9 million on the 1st of July as expected.
00:00:43:03 - 00:01:09:12
Unknown
In terms of other superannuation and taxation announcements, nothing really there to be concerned about. We did have the government recommitting to the $3 million total superannuation balance tax, but we pretty much knew about that. Also in terms of Social Security, we saw increases to working age payments and also the announcement of some energy bill relief of up to $500 or $650 for eligible small businesses.
00:01:09:18 - 00:01:33:15
Unknown
And in terms of clients that will go to aged pensioners, recipients of the Commonwealth Seniors Health Scheme and also Parenting Payment, Part A and Part B recipients. Other than that, we also had some announcements in relation to aged care, mostly just implementing some of the recommendations out of the Royal Commission. If you want more information, please see our full Federal Budget briefing that goes into a lot more in-depth analysis.
FirstTech briefing paper
For an in-depth analysis of the 2023-24 Federal Budget announcements, read the FirstTech briefing paper. Some of the key initiatives we address:
- Change to frequency of super contributions from quarterly to on pay day
- Higher tax for earnings on super balances over $3 million
- Cost of living measures including energy relief, cheaper medicine, and bulk billing
- Small business tax changes such as the $20,000 instant asset write off
- Changes to social security to provide additional support to those most in need
- Cheaper childcare to support working parents
- A range of aged care measures.
Client communications
To share highlights from the Budget with your clients, we’ve created an information flyer.
Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and issuer of FirstChoice range of super and pension products. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the responsible entity and issuer of products made available under FirstChoice Investments and FirstChoice Wholesale Investments.
Information on this webpage is provided by AIL and CFSIL. It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the target market determinations (TMD) for our financial products at https://www.cfs.com.au/tmd which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.