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!