13/10/2020
From 1 July 2020, two years earlier than previously legislated, the Stage 2 low income tax offset (LITO) and the thresholds for the 19% and 32.5% personal income tax brackets are proposed to increase. Stage 3 of the Personal Income Tax Plan remains unchanged and commences in 2024/25 as legislated.
From what I am hearing is that this legislation was passed late last week and we should expect to see these savings in our pay either this week or next week. If you are a PAYG holder, you can speak to you accountant to adjust this amount on your next submission. 🤗
13/10/2020
What you need to know
> The Budget is forecast to result in a record deficit peaking at $966 billion (44% of GDP) in 2024. However, thanks to record low interest rates, this comes with only a minimal increase in interest payments.
> Jobs are the Government’s primary focus — creating jobs and keeping jobs, with the introduction of the JobMaker plan (including a $100-$200 per week hiring credit for eligible employees/employers and reimbursement of up to 50% of an apprentice’s training) and the JobTrainer fund.
> Tax cuts will play a major role and, unlike other economic downturns, there will be no deficits tax on high income earners. Stage 2 personal income tax cuts are to be brought forward 2 years, backdated to 1 July 2020, with tax savings for around 7 million Australians of $2,000 or more.
> Business Owners will be able to carry back tax losses from the 2019/20, 2020/21 and 2021/22 financial years to offset previously taxed profits in the 2018/19 or later financial years. This, coupled with the Instant Asset Write-off provisions and expanded access to tax concessions for small business, is calculated to generate spending and create jobs.
> Superannuation measures called ‘Your Future, Your Super’ include a stronger focus on reducing fees and costs by increasing transparency and reducing the incidence of individuals with multiple super funds.
This information is issued by Millennium3 Financial Services Pty Ltd (M3) ABN 61 094 529 987, which holds Australian Financial Services Licence Number 244252 and is a summary of M3’s understanding of the proposed Federal Budget 2020/21 changes announced on 6 October 2020. M3 is a company within the IOOF Group of companies, consisting of IOOF Holdings Limited ABN 49 100 103 722 and its related bodies corporate. The changes are subject to the passing of legislation and, accordingly, may not become law or may change. Please note that the information is based on M3’s interpretation of the proposed changes as at the date of issue of this document. Accordingly, you must not do or refrain from doing anything in reliance on this information without obtaining suitable professional advice.
31/08/2020
Attn Victorian Ladies... did you know the state government has announced a $5,000 business support fund grant for regional Victoria and a $10,000 grant for metropolitan Melbourne?
If you currently qualify for job keeper, employ people and have been effected by the lockdowns then go to the website www.business.vic.gov.au for qualifying criteria and more information.
Applications close on the 14th September so get in quick!
23/08/2020
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In this weeks episode I chat to Kirby Smith, Kirby is a Financial planner who works with Two mile bay financial planning in Torquay, Kirby also runs her own program called Womens financial education and the program was established to promote financial literacy amongst women.
We chat about the impact of Covid-19 on Australian family's financial situations, we discuss ways to mitigate some of these issues and we also discussed some of the unusual spending trends arising from this pandemic, I really enjoyed the chat and i hope you do too.
23/07/2020
The government has extended the early access to super until the 31st December 2020. Make sure you assess the impact this will have on your retirement savings before considering to withdraw.
