Federal Budget Summary 2017 – 18

The Hon Scott Morrison MP handed down his second Federal Budget on the 9th of May 2017.

Pleasingly, and unlike last year, superannuation has largely been left alone. The main changes involve allowing people aged 65 and over to downsize their home and gain exemptions from the superannuation caps, and also a ‘First Home Super Saver Scheme’. Both are pretty good ideas.

On the whole though, it is a nothing budget. Certainly, there has been no movement to tackle the growing deficit which is forecast to reach $725 billion by 2025, but in all likelihood will be pushing the $1 trillion mark. The politically expedient option of leaving the debt problem to a future generation continues.

Please note, all the announcements still need to pass through Parliament; until then they can be viewed as merely a statement of intent. In addition, the devil is always in the detail, and the details aren’t yet fully known.

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DEBT MANAGEMENT

I sometimes get contacted from people seeking advice on their debt. They are at various levels of default with finance institutions. It’s heartbreaking to hear, but it’s not an area I provide advice on; plus i don’t want my fee to add to their financial difficulties. This blog article does offer some pointers on debt management though.  (more…)

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Changing Insurance Terms & Definitions

unsure on insurance

Life insurance in super

It is likely that you know whether you have life insurance through your super fund, and you may even know the amount and the premiums you are paying for the cover. It is highly unlikely though that you have read the latest Product Disclosure Statement and understand the terms and definitions used in ascertaining whether anything will be paid out. More importantly is that with ‘Group Insurance’ these terms and definitions can change.  (more…)

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Insurance In Super?

not-so-super-deal

Most superannuation funds offer life insurance

In fact if you join your employer’s default super fund it is compulsory for a level of life insurance to be provided. Very conveniently for the insurers and super funds, the obligation is for the fund member to ‘opt-out’ if they don’t want the insurance; that is, if you don’t explicitly refuse the cover, you pay for it. That’s why it’s important you read the following…. (more…)

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