If you are a self-funded retiree there’s some good news, with the government legislating to increase the income thresholds for the popular CSHC. This new rule will allow an extra 44, 000 older Australians access to the relevant pharmaceutical and medical benefits discounts and other associated concessions that the card provides.
Income thresholds have been increased from $61, 284 to $90,000 for singles and $98, 054 to $144,000 for couples. Even better, assets are not included. It is purely based on income. From a financial planning perspective, this provides greater opportunities for clients who generate income from employment, business or real estate, and government/defence pensions.
Another significant proposal for retirees includes more accessible downsizer contributions (even if you’ve already got $1.7 million in super). It is anticipated the new legislation (yet to be passed) will reduce the age limit from 60 to 55 allowing people to get more into super earlier. It is also an opportunity for those over 75 to contribute money into super due the fact the downsizer doesn’t have an age cap.
Reduced age limits for downsizer contributions
If you are retired or thinking of retiring soon it is worth speaking to your financial planner about these new benefits and the best strategy for your circumstances. Get in touch.
General Advice Warning: The information provided in this article is general in nature and does not take into account your particular investment objectives, financial situation or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
