My Budget Thoughts
Firstly, I have made very public my issue with tinkering with superannuation and we are happy to see Treasurer Swan has avoided changes that would reduce incentives and benefits of the superannuation system. We endorse a sensible introduction of changes to encourage people to save for their retirement with greater certainty. Myself and the FPA encourages all working Australians to become self-funded in retirement and we welcome the changes made to the superannuation caps and to the excess contributions tax which will assist with this.
I was not surprised but it is disappointing to see no announcement in support of small business across Australia. The financial planning profession has been and will continue to be under significant strain as a raft of new regulation come into effect in 2013. These small financial planning businesses will receive no support from Government with the implementation of Future of Financial Advice laws on 1 July.
I think the majority of Australians welcomed announcements made on the Disability Insurance Scheme and understands the need to increase the Medicare Levy to fund this positive initiative. While the Disability Insurance Scheme will benefit a number of those who are eligible, we encourage families and those people who qualify under the scheme to speak to a qualified financial planner to ensure you are fully aware of your entitlements.
At the end of the day from a financial planning point of view, these changes like every year require advice which I and many in our industry are experts in.