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;
4. Work bonus increase
The work bonus allows age pensioners to continue working into retirement without heavily reducing their pension entitlement. The maximum fortnightly employment income that can be disregarded under the work bonus increased from $250 to $300 on July 1, 2019, while the maximum unused bonus able to be carried forward also increased from $6,500 to $7,800. The work bonus now applies to self-employment income, as well as employment income, significantly broadening the potential clients it can benefit.
This $50 reduction in assessable income per fortnight can provide a pension increase of up to $650 a year.
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.