The new financial year always brings change, and 2019/20 is one of the more dynamic in recent times. An array of rates and thresholds have moved, but the first week of this July brings more than just incremental changes. A number of rules affecting the clients of financial planners are markedly different in the new financial year. This month there are a dozen of these changes that planners need to know about;
13. Government plans to cut deeming rates
Treasurer, Josh Frydenberg, has announced that the Government will cut the social security deeming rates, effective July 1, 2019. The lower deeming rate will be cut from 1.75% to 1% and the higher deeming rate from 3.25% to 3%.
Even in a year when little seems to have changed, advisers need to be on their toes. A returned government doesn’t mean everything remains unaltered, and the fulfilment of election promises may mean more change is on the way. Clever navigation of these changes can reap rewards for the clients of well-informed advisers.
The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.
The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.