Yet to be legislated budget proposals

These yet to be legislated proposals include:
- 50% discount on up to $1,000 of interest income earned;
- Reduction in the corporate tax rate;Increasing the superannuation guarantee by annual increments commencing in 2013/14 until it reaches 12% by 2019/20;

- Raising the Superannuation Guarantee age limit from 70 to 75 from 1 July 2013;
- Extending the current $50,000 pa concessional contribution cap for those aged 50 and over so that it will also continue to apply after 30 June 2012. However, the $50,000pa (indexed) concessional cap for the 2012/13 income year and onwards will only apply where the super account balance is under $500,000; and
- Provision of a new Government superannuation contribution which will pay up to $500pa for individuals with adjusted taxable incomes less than $37,000, from 1 July 2012. This is separate and additional to the co-contribution in respect of non concessional contributions.

Happy Easter All!

Top Australian Equities Manager for March 2011

Another plug for our Investment Management team, Dalton Nicol Reid, whose topped the Australian Equities Manager list for March 2011.

There High Conviction portfolio has provided an annual return of 14.3% since inception as at 31 march 2011.

Check out the link:
Australian Financial Review, Friday 15 April, p.49

Australia's First Home Saver Account (FHSA)

Proposed changes to legislation, if passed, will increase the flexibility of Australia's FHSA.

The FHSA account is a concessionally taxed vehicle to accumulate funds for the purchase of your first home.

(For further information on FHSAs please contact our office.)

Currently, if you purchase your first home before the fourth year, funds held in the FHSA will be rolled to super. It is proposed that the FHSA at the point of purchasing your home will become inactive to the end of the four year at which point the funds can then be contributed to your mortgage, not super. 

Interest Rates on hold

At its meeting today, the Reserve Bank of Australia decided to leave the cash rate unchanged at 4.75 per cent.

Strong Australian Equities Returns

Dalton Nicol Reid, our specialist investment manager, has outperformed the S&P / ASX 200 Accumulation Index by 4.9 per cent over the 12 months to 31st January.

Key drivers of the portfolio's performance over the last 12 months was Dalton Nicol Reid’s identification of the opportunity for stronger companies to become stronger via merger and acquisition activity in the post-GFC environment.

Flood Levy

Julia Gillard announces Flood Levy.

Those earning between $50,000 and $100,000 a year would pay an additional 0.5 per cent flood levy tax, while those earning over $100,000 would pay an additional 1 per cent tax.