Welcome to the June issue of Financial Insights and Updates.
Australia’s borrowers have been given another reprieve, with the Reserve Bank leaving its key interest rate on hold for a fifth consecutive board meeting but retaining the option of a further rate hike if needed. “Inflation is easing but has been doing so more slowly than previously expected and it remains high. The board expects that it will be some time yet before inflation is sustainably in the target range,” the RBA said.
Some key changes from 1 July that you should know include:
- Stage-three tax cuts
- superannuation guarantee will rise from its current rate of 11% to a new rate of 11.5% for the 2024-25 financial year
- national minimum wage and modern award minimum wage will see their rates increased by 3.75% to $24.10 per hour
- concessional contributions cap will increase from $27,500 to $30,000
- non-concessional contributions cap will increase from $110,000 to $120,000
- paid parental leave to increase from 20 weeks to 22 weeks
- households will start receiving four quarterly energy rebates of $75 per residence
This month we have a feature article, ‘What’s your number? Part 1‘ which looks at 2 key numbers – “How much do I need to retire?” and “How much can I afford to spend?”. Our article ‘The Superannuation change from 1 July‘ goes into more detail about the changes related to Superannuation mentioned above.
Other interesting articles this month include ‘15 insurance terms you need to know’ which aims to help you understand some common insurance terms so you can better navigate the often confusing world of insurance, and ‘How much cash is too much‘ which looks at how sometimes maintaining too much cash in your portfolio can have a detrimental and permanent impact on financial outcomes.
As always, feel free to forward any articles to friends and/or family that you feel may benefit from the information.
In signing off, please remember that we are always available to answer any questions or queries you may have and to come speak with us before making any major investment decisions.
Warm regards,
The Wealth Connexion Team
Feature Article:
What’s your number? Part 1
The Superannuation changes from 1 July
A number of superannuation changes will come into effect from 1 July 2024 that are designed to help working Australians get more money into the retirement savings system.
If fully utilised, the changes potentially allow all super fund members, including those with a self managed super fund (SMSF), to add tens of thousands of dollars extra into their account from the start of the 2024-25 financial year.
A different "End of Financial Year Sale"
As June 30 fast approaches, there is still time to consider the strategies available to you this financial year to build your wealth.
4 ways to save money and the planet
Caring about the environment is one thing, but if it requires us to make drastic changes or go without, our enthusiasm can soon wane.
Unfortunately, Australians consume a lot more per person than people in most other countries simply because of how we choose to live. If the rest of the world consumed as much as we did, we’d need at least two more planets to meet the demands on nature.
There are some simple things you can do to reduce how much energy, food and water your household consumes – and what gets thrown out – without feeling deprived. The result is a healthier bank balance and a more sustainable lifestyle.
15 insurance terms you need to know
Life insurance, TPD, trauma, and income protection policies can be confusing areas to navigate.
And not understanding these policies can cost you when things go wrong.
Here is a glossary of some common insurance terms to help you start.
How much cash is too much?
While cash is often viewed as a safe haven, it does have investment risks.
Australian households are collectively sitting on close to $1.5 trillion in cash, which for the record is substantially more than the total value of Australian bank notes in circulation.
Deeming freeze a win for Age Pensioners
Why the decision to keep deeming rates on hold may be a window for interest rates.
In delivering the latest federal budget, the Treasurer announced that the current freeze on social security deeming rates will continue until 30 June 2025.
It was a passing reference, but one that potentially has big income implications for an estimated 450,000 people receiving a full or part government Age Pension payment.
