Australian Budget

You have probably heard by now that last night’s budget, which is being called the “battler’s budget”, promises a surplus in the years to come. In a very ambitious plan to turn a $44 billion deficit into a $1.5 billion surplus, the Federal Government has had to make some serious changes and cutbacks. In our review of the budget we look at these changes and how they may affect you and your clients.

Australia's $376 billion government budget announced last night included a forecast $1.5 billion surplus in 2012-13 that will increase steadily to $7.5 billion over the next four years.

The Federal Government did not deliver any nasty surprises in the 2012/13 Budget, as most of the  announcements that affect  superannuation had already been  leaked during the lead up.   However, what they did do was continue the trends of the past four years which is to discourage, or provide a disincentive for people to make voluntary contributions  towards their retirement. 

 Leaving political rhetoric aside, the 2012 Budget contained no significant surprises that hadn’t been previously announced. The winners are Mr Swan’s “battlers” and the aged care sector.

The 2012/13 Budget is projected to deliver a modest surplus of $1.5bn.

Part 1 – Taxation 

Financial literacy is a vital part of navigating today’s complex financial world. However, despite the importance of financial literacy, certain socio-economic groups have been consistently left out when it comes to receiving financial advice. Low income clients are a major group which have traditionally been excluded from the advice process. This is partly due to barriers such as cost and access to affordable advice, but also due to issues such as an industry focus on high-net-worth clients.