Need to know

Outlined below is all the latest news you 'need to know'.

IssueWhat it meansWhat do you need to be thinking about?
2020/2021 Federal Budget

Save the date – 2020/21 Federal Budget to be delivered on Tuesday 6 October 2020

The Federal Budget is usually announced on the second Tuesday in May but was postponed until 6 October because of the COVID-19 crisis. There may be measures announced that impact your clients.

Please join us on Wednesday, 7 October at 2.00pm (AEDT) for a technical webinar where we will:

  • outline the major budget announcements and analyse what they mean for you and your clients
  • highlight opportunities that arise from the budget announcements
  • cover ‘hot topics’ on super and recent legislative recommendations - providing an insight into the Government’s super policies.

To register please click here.

Our Federal Budget webinar will analyse any amendments to superannuation, taxation and social security so you’re well prepared to advise your clients if changes are needed.

Australian Taxation Office

Why is the ATO call centre so popular?

Top ATO call centre questions

The ATO have released their ‘Top call centre questions’. Many relate to COVID-19 measures such as eligibility for JobKeeper and early access to super.

One popular question concerned whether an individual can apply for a second COVID-19 early release of super in the 2020/2021 financial year if working hours, which had dropped by 20% or more since 1 January 2020, have gone back to normal.

The ATO are receiving high call volumes meaning lengthy call wait times.

The ATO’s top call centre questions provide an insight into common questions your clients may ask. An awareness of these ATO questions and answers can help you to advise accordingly.

Department of Social Security
Age Pension frozen – No increase in Centrelink rates and thresholds

The maximum Age Pension remains unchanged.

 From 20
September 2020
Single $944.30*
Couple (each) $711.80*
*Includes Energy and Pension Supplements

The Minister for Families and Social Services, Anne Ruston, has confirmed that further support around our pensions is something that is contained in the budget.

Please read our Federal Budget summary on Wednesday 7 October 2020 for confirmation of any announcements that may impact your clients.

Aged care fees frozen – no change to aged care rates, thresholds and subsidies

There is no change in aged care rates, thresholds and subsides from 20 September 2020. A current schedule of fees and charges for residential and home care can be found here.

The current aged care subsides and supplements schedule can be found here.

The maximum permissible interest rate used in calculating interest on any outstanding payment remains unchanged at 4.10% for residents entering aged care between 1 October to 31 December 2020.

Current and historical maximum permissible interest rates can be found here.

Bills before Parliament
The wait continues – Extension of non-concessional contributions bring-forward age to 66

The Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 proposes to increase the age at which people can access the non-concessional bring-forward rules from age 64 to 66 from 1 July 2020.

Under current legislation, only clients who were age 64 or under at the start of the financial year are eligible to access the bring-forward rule. Furthermore, clients also need to have a total super balance of less than $1.4 million as at 30 June 2020 to access the full $300,000 bring-forward amount.

Parliament resumes on 5 October and again on 9 November 2020. The October sitting will focus on the Federal Budget so this Bill may not pass the Senate in the next sitting.

A Parliamentary Sitting calendar can be found here.

More information

If you have any questions, or would like more information, please contact the IOOF TechConnect team on 1300 650 414.

Disclaimer
The information in this section of the website is intended for financial advisers only and is not to be distributed to clients. It has been prepared on behalf of Australian Executor Trustees Limited ABN 84 007 869 794 AFSL 240023, IOOF Investment Management Limited ABN 53 006 695 021 AFSL 230524, IOOF Investment Services Ltd ABN 80 007 350 405, AFSL 230703 and IOOF Ltd ABN 21 087 649 625 AFSL 230522 based on information that is believed to be accurate and reliable at the time of publication.