Federal Budget 2011 Website

The Gillard Government, handing down its first Budget, last night outlined $22 billion in long-term savings which would produce a budget surplus in 2012-13 of $3.5 billion, which equates to just 0.2% of the economy’s output for the year. They also confirmed a range of previously announced tax, super and social security policy changes.

The economic recovery is expected to gather momentum with GDP forecast to grow at 3.75% in 2010/2011 and then 4% in 2011/2012 which results in a much lower then expected unemployment rate.

Note: Unlike previous years, this Budget was delivered by a minority Government that may find it more difficult than usual to get some of these measures through both Houses of Parliament.

Forget sending the kids to fancy private schools, forget ski holidays in Aspen, Hermes handbags and holiday houses at Portsea and Margaret River. If you really want to keep up with the smart set, see your accountant or financial planner about setting up a self-managed superannuation fund.

Until quite recently, DIY funds were the playthings of the self-employed and the rich, whose trusted accountants would readily recommend the schemes as a flexible, cost-effective way to save for retirement.

Financial planners, accountants and trustees are calling for self-managed superannuation funds to pay a levy that would give them similar protections to members of large pooled funds against investment fraud

The collapse of investment company Trio Capital highlighted discrepancies in the treatment of members of self-managed super schemes and pooled funds when it emerged this week that more than 5300 members of large schemes would collect $55 million in compensation, while 285 do-it-yourself (DIY) funds that fell victim to Trio's failure would be left out of pocket.

Accountants will not give up their position as the preferred adviser to do-it-your-self super funds, despite attempts by financial planner networks to win over their clients.

The DIY super sector is the fastest growing in superannuation and accountants say it is too valuable for them to relinquish their stranglehold on the industry.

"Accountants aren't going to give up managing their clients DIY super funds," said Joseph Gittany, the head of tax at financial services firm Announcer Group. "They don't want to give away their accounting fees because the sector has the largest growth in accounting fees."

As part of Financial Planning Week (24-30 May), Announcer's Certified Financial Planners took part in an online question and answer service "Ask an Expert" developed by the Financial Planning Association (FPA).

Some of Announcer's financial planners, who are members of the FPA, answered your questions on financial matters as wide-ranging as superannuation, savings and investments, managing tax and retirement planning.

The long awaited Henry Review was released yesterday. The announcement is part of a "first wave" of tax reform which focuses on super, company tax and superannuation.

The Federal Government is appealing to low-income earners and older workers through superannuation reform, with the employment guarantee to be lifted to 12% and its age restriction increased from 70 to 75 years of age.

For once there was some good news for small business with a 2% cut in company tax and immediate asset write-off provisions. If you are a medium-sized business though, you'll have to wait for your tax cut.

The Media outlets have been focusing on the fact that only a fraction of the recommendations are being supported by the Government, and much is dependant of the big miners footing the cost, but for accurate timely advice please call your adviser.

UP to half of Australians don't have a will, leaving their family exposed to a long, stressful paperwork nightmare. Even with a will, however, there is still a high chance that assets and personal items can end up in the wrong hands. Mistakes and misunderstandings about how to word a will are common practice.

Don't let your spare cash sit idle. Use a home loan offset or redraw account to earn the equivalent of 12.5 per cent. How does a 12.5 per cent annual return sound? What if I said it was after tax? Would you believe me if I said it's virtually risk-free? In fact, that's the sort of return you can achieve if you "save" by directing money into extra mortgage repayments.

Once a feature of more expensive home loan packages, redraw facilities and mortgage offset accounts come attached to even some "basic" home loan products these days.

Then there are line-of-credit loans where you can also move money in and out - eroding the interest payable on your home loan as long as you're disciplined enough to make sure you stay in positive territory.

Announcer Tax is re-inventing the way tax administration services are being undertaken for their tax clients. With a process driven approach, the Announcer Tax team can efficiently and effectively process tax returns, “We’d like to spend more time providing advice than just doing tax returns”, says Joe Gittany, head of Announcer Tax. Read more...

Announcer is delighted to announce that we have been selected as a FINALIST for the Financial Reviews’, ASSET INNOVATION AWARDS. As a finalist we are pleased to have received the messages of support from our clients, industry peers and media such as...