WA Super News
Federal Budget 2012
On 8 May 2012, the Federal Government handed down its Budget for 2012/13.
It would be fair to say that everyone will be impacted in some way by the measures contained in the Budget itself, or by other recent announcements from the Government that will apply from 1 July 2012.
Many of the measures in the Budget had been alluded to in the days leading up to the Budget itself, so there weren’t a lot of hidden surprises. However, one major surprise was the Government’s decision to defer the (re)introduction of a higher concessional contribution threshold for people aged 50 or over to 1 July 2014. Previous announcements have indicated a 1 July 2012 start date.
As a result of this deferral, the concessional contribution cap for everyone from 1 July 2012 (and until 30 June 2014) will be $25,000 per annum.
This deferral announcement, along with many other measures released, does highlight the need to establish and have an on-going relationship with a financial planner. Whilst everyone is likely to be impacted by the Budget announcements in some way, some will be impacted more. With a constantly changing legislative environment as the Government seeks to deliver a Budget surplus, there can be no substitute for receiving advice from your financial planner as to how these measures affect your personal circumstances, and to have someone to guide you through the changes.
Despite largely having been announced previously, most measures will still need legislation to be introduced, so the final version of the changes may differ to the announcements made in the Budget. As with all changes, it is important that you speak with your financial adviser to determine how these announcements will impact on your personal situation.