2014-15 Federal Budget – 7 Things Working Families Need to Know

Budget Changes For Working Families

Budget Changes For Working Families

 

You’ve won some, you’ve lost some. The biggie here is the rise in the retirement age, which the government has been telegraphing for a while. Working an extra 3 to 5 years (depending on when you were born) is going to have a big impact on most people’s long term financial planning.

1. There will be a new Paid Parental Leave Scheme.

2. Some child benefits will be discontinued when a child reaches the age of 6 as opposed to the current age of 16.

3. Family assistance thresholds will be reduced.

4. Doctor visits will no longer be free – a fee of $7 will be charged.

5. The Energy Supplement will stay in place and the government estimates the average family will benefit to the tune of $550 due to the abolition of the Carbon Tax.

6. The cost of running a car will rise – the gasoline tax that has been frozen since 2001 will now be indexed to inflation twice a year.

7. If you were born after 1965 your retirement age will be raised to 70.

If you want to find out more about how the 2014/15 Budget will affect your financial future, phone Wealthwise on 08 9380 6333 to speak to one of our advisers or use our Contact Form.

 For Federal Treasurer Joe Hockey’s full statement check out the government’s budget website.

Prepaying Private Health Insurance Before 30th June – Case Study

Yesterday, we explained what is going to happen to the Private Health Insurance rebate from 1st July, 2012  – a sliding scale based on age, marital status and income levels.

Today we will look at the details.

These are the new rates as provided by the ATO’s website

 

Although we didn’t mention it yesterday, note also the sliding scale of the Medicare levy surcharge.

The other important matter we should mention is that how the ATO defines income and how YOU define income might not tally, so be sure to check out this link to the Australian Tax Office . If you are still in doubt contact your tax adviser or your Wealthwise financial adviser.

Case Study

Let’s have a look at how much you could potentially save by prepaying your premiums before the 30th June, 2012.

A family currently paying premiums of $233.33 per month or $2,800 pa (after taking into account the 30% rebate) would keep this level of premiums if they prepaid. If they didn’t, their premiums for 2012-13 would depend on their income level.                                                                             

(IMPORTANT: Remember this is income level according to the ATO’s criteria).

 

 

Unchanged

Tier 1

Tier 2

Tier 3

Family Income

$168,000 or less

$168,001 – $194,000

$194,001 – $260,000

$260,001 or more

Rebate

30%

20%

10%

0%

Annual Premium

$2,800

$3,200

$3,600

$4,000

 

Potential Savings

 

 

-

 

$400

 

$800

 

$1,200

 

 As can be seen from the table above, for a family with an income below the new $168,000 threshold, there seems to be no potential financial gain from prepaying. However, if you are unsure about any information in this article, phone your Wealthwise financial adviser on (08) 9380 6333 or get in touch via the Contact Us form on the website. Alternatively, talk to your existing private health insurance provider.

Continuing with the the end of the Financial Year theme, tomorrow we look at “Tidying Up Your Super Before 30th June”

 

Disclaimer:

The information in this article is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. It should not be construed as financial, taxation or legal advice.

Before acting on the basis of this information, you should consider its appropriateness to your own objectives, financial situation and needs. You should also obtain and read a copy of the relevant Product Disclosure Statement before making any decision to acquire a financial product.

 

Ashley Britton Joins Wealthwise Adviser Team

New Wealthwise Financial Adviser Ash(ley) Britton

Wealthwise welcomes a new adviser this month – Ashley Britton.

Ash has worked in the Financial services industry since leaving university in 2005 where he graduated with an Economics degree majoring in Bank Finance and Accounting.

Ash has gained experience working within Commonwealth Bank before joining the Wealthwise Team and has completed his Advanced Diploma of Financial Services in 2012. He has gained extensive knowledge of retirement planning, investment, and wealth protection and also accredited in SMSF and gearing strategies. 

Ash’s aim is to understand the client’s position, needs and objectives to provide an outcome that enables peace of mind and a clearer vision of their financial future.

The Principal of Wealthwise, Jamie Luxton, sees Ash’s  wide knowledge as being a great asset for our clients:

“Ash is very good at seeing the ‘big picture’ and, being very client-orientated, will fit in well with Wealthwise’s company culture.”

 

If you would like to discuss your financial future with Ash call him on (08) 9380 6333 or send him a message using our Contact Us page.