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Advisers on Tour and quick Budget highlights

While the Budget week was full of deliberations, two advisers took the Budget week out to walk the Overland Track from Cradle Mountain in Tasmania to Lake St Clair over 6 days. In the interest of experiencing nature, we carried our rations and a tent. Fortunately, we had six days of blue skies and no rain – so unusual for Tasmania at this time of the year. As you can see it was a success and we fully recommend the experience.

To the Budget, the key change affecting our clients was the 12-month extension of the reduction in minimum drawdown rates for account-based pensions for the 2022-23 financial year. So if your minimum drawdown was previously 5%, it becomes 2.5%. It doesn’t mean you cannot draw more; rather, it allows you to hold the monies in the tax-free superannuation pension environment. So that was good news.

In other good news, the removal of work tests for personal contributions for people aged 67-75 and the age for downsizer super contributions reduced to age 60; were strategies I spoke about previously. All are now law and in effect from 1 July 2022.

Once again, if you have any questions about these strategies and how they may apply to you, please feel free to contact us directly.

Have a great week!

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