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It’s hard to reconcile this Treasurer (who once said his heroes were Margaret Thatcher and Ronald Reagan) with this Federal Budget which would make any ‘Keynesian’ proud - but in a pandemic, ideology goes out the window.
This Federal Budget ticks the boxes and fills the gaps in Government policy that were achingly obvious from the ‘hard-hat’ 2020/21 Budget (was that really only six months ago?).
On the superannuation side there is a definite feel of a Budget that aims to clean up some out-of-date rules and restrictions that no longer have a place in super and retirement:
It is also important to take note of super issues NOT addressed in the Budget:
What was good to see was the reappearance of ‘The Women’s Budget Statement’ with substance (we assume thanks goes to Senator Hume, perhaps?). Many new policies have already been released. We’re happy that the Government is finally recognising that money into child care allowing women to return to the workforce more easily, will help to kick-start economic recovery.
We’re very pleased to see ‘The Women’s Budget Statement’ addresses measures to improve the problem of financial abuse towards women and the importance of developing financial literacy programs to counter it. There is no doubt more can and should be done in this area of financial literacy to empower women. It is disappointing that the retirement savings gender gap has not been addressed by this Budget, particularly as the rates of poverty for older women is an ongoing and significant problem.
It’s good to see the Government is getting back to its knitting with aged care. While the findings of the Royal Commission into Aged Care Quality and Safety would have been hard to digest, it’s good to see 80,000 new aged care packages and overall improvement in funding.
Finally, and one of our favourite measures from the Budget, is that the Government will provide tax support to craft brewers and distillers by aligning the excise refund scheme with the wine equalisation tax producer rebate, supporting local businesses.
Download the full analysis of the Federal Budget 2021/22 from the IOOF TechConnect Team.
Our TechConnect Team is made up of experienced industry experts who are dedicated to creating powerful strategies for you to use with your clients.
Technical support from TechConnect is available to IOOF licensees and financial advisers who use IOOF products, platforms and services.
Meet our TechConnect Team
Our IOOF TechConnect Team hosted a webinar for advisers on Wednesday, 13 May 2021, discussing major announcements from the 2021/22 Federal Budget and how these can impact your clients.
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