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  • MAGNIFY Wealth

2022-23 Budget 2.0 for Investors

With the recent budget being focused largely on easing the cost of living and investing for the future, there were some announcements that were of special interest to investors.


Superannuation

A reduction in the minimum age for "downsizer" contributions

Downsizer contributions are super contributions connected to the sale of your home. The previous age eligibility to make these contributions was reduced from 65 to 60, the government has announced it will further reduce the age eligibility to age 55. The maximum downsizer contribution is $300,000 each. This will allow more people to contribute proceeds to their super and increase their retirement assets.


Pensioners

Freezing deeming rates

The budget looks to freeze income test deeming rates at their current levels for a further two years until 30 June 2024.


Extending the sale proceeds exemption for age pension assets test

Currently, when an age pension recipient sells their home, but intends to purchase another home, the proceeds can be exempted form the age pension assets test for up to 12 months. The new legislation proposes to extend the timeframe to 24 months. This will allow them to continue receiving their entitlement while they search for a new home.


Temporary increase to work bonus for pensioners

The work bonus allows age and veteran pensioners to earn a certain amount before their entitlements are decreased. From December 2022, the government has announced a one-off increase of $4,000 this financial year, increasing from $7,800 to $11,800.


Increased income threshold for Commonwealth Seniors health card

The work bonus allows age and veteran pensioners to earn a certain amount before their entitlements are decreased. From December 2022, the government has announced a one-off increase of $4,000 this financial year, increasing from $7,800 to $11,800.


To find out how these changes will impact your financial wellbeing, and to make the most of them in these trying times contact our team today.


You can read more about the full Budget announcements in this summary by our colleagues at Power Tynan.




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