2020 Federal Budget Analysis

2020-21 Federal Budget Update

The Federal Budget was delivered on 6 October 2020 and it was generous in many ways with the intention of jolting the economy out of recession e.g. Tax cuts for workers, a bonus for Aged pensions, wage subsidies for younger workers plus plenty for large businesses.

These budgets are always underpinned by a number of assumptions (unemployment rate, economic growth, inflation etc.) but far more interesting this time is the expectation by the government that all Australians will be vaccinated against Coronavirus by the end of 2021.

The following link has a nice and simple summary: 2020 Federal Budget Analysis

Checklist for the end of financial year

Checklist for the end of financial year

The end of financial year on 30 June is a good time to take stock and get your finances in order.

This is an end of financial year like no other.

Being prepared, reviewing your super contributions and submitting your return on time are good policies every year, but the shadow of COVID-19 (coronavirus) means many of us face unexpected pressures in a changing economic environment.

Many people will have concerns around job security, which makes long-term planning seem less important.

You may face urgent priorities for your money, such as mortgage repayments, covering bills and paying down debt.

If you’ve worked from home this year, the government has recently released guidance on claiming working from home expenses as a tax deduction. Due to COVID-19, this financial year the ATO will accept a shortcut method for calculating running expenses from 1 March to 30 June.

Here are some other things to consider as 30 June approaches.

What’s new this year if you’re at or near retirement

Changes kicking in this financial year include lower minimum pension drawdown requirements to help retirees affected by significant losses in financial markets as a result of COVID-19.

The minimum annual payment required for account-based and allocated pensions and annuities has been cut by 50% in the 2019–20 and the 2020–21 financial years.

If you’ve recently retired, you may still be able to make voluntary super contributions and potentially claim a tax deduction for personal super contributions. Current regulations allow eligible ‘recent’ retirees, aged 65 and over, a limited exemption from having to meet the work test, which is otherwise required to make voluntary super contributions. This applies to contributions made from 1 July 2019.

This is also the first year that those who are eligible can use unused carried forward concession cap amounts from the previous financial year.

First applications for early release of super withdrawals up to $10,000 must be made by 30 June. A further application can be made between 1 July and 24 September 2020.

Super fund members born between 1 July 1962 and 30 June 1963 will reach their preservation age during the 2020/21 financial year and may wish to consider whether a transition to retirement pension is appropriate.

Proposed changes

From 1 July 2020, the following proposed changes, if legislated, may benefit members aged 65 and 66 who want to make additional contributions to super. Note that legislation around these changes hasn’t yet been passed.

    • Up to age 67 (currently 65) you will be able to make personal and non-mandated employer contributions to super without needing to satisfy the work test (ie been gainfully employed for 40 hours in 30 consecutive days during the financial year in which the contributions are made).
    • You will be able to access the bring forward provisions for the non-concessional cap up to age 67 (currently 65). This means you will be able to contribute up to $300,000 to super (you can generally bring forward up to $300,000 if your total super balance on the previous 30 June is less than $1.4m, or up to $200,000 if it’s less than $1.5m).
    • The maximum age at which you will be able to receive a spouse contribution will increase from 70 to 74.

Think about making extra super contributions

End of the financial year is usually a good time to think about making extra contributions to take advantage of the lower rates of taxation on super.

While that might be harder this year with competing priorities, it still makes sense to keep in mind that additional contributions today could boost your super balance in the future. There are a number of different types of contributions to consider. You may also be able to reduce your taxable income and pay less on investment earnings.

To claim a tax deduction on your post tax contributions, you need to tell your super fund by filing a notice of intent. You will generally need to lodge this notice, and have the lodgement acknowledged by your fund, before you file a tax return in the year you made the contributions.

If you’re earning more than your partner and would like to top up their retirement savings, or vice versa, you may want to think about spousal contributions. The spouse making the spousal contributions could be eligible for a tax break.

You and/or your partner may also be eligible to receive a government co-contribution. If so, you might consider making a personal non-concessional contribution before 30 June to make sure you receive the matching government co-contribution for the 2019-20 financial year that you are entitled to.

Consider your insurance premiums

If you have income protection cover, and your budget allows, you may consider pre-paying your premiums 12 months in advance to take advantage of claiming a bigger tax deduction this year. This may work well if your income is higher in the current income year than next.

However, it is important to get some tax advice as to whether doing so this year is a good idea for you based on your income.

Talk to a professional

If you use a tax agent to complete your return, it’s worth having a word with them about your circumstances to see if there are other potential savings you can make. Also have a word with us, if you haven’t already as we can assist you to make the best decisions for your situation at this time.

©AMP Life Limited. First published June 2020

Smart Money Choices Webinar Series: Keeping Financially Ahead of the Curve

In the current climate we are looking for innovative ways to keep you informed and we are delighted to extend an invitation to one of our upcoming webinars. The purpose of these sessions is to provide a free and informative webinar specific to the impacts of COVID-19 and ensuring financially you stay “ahead of the curve”.

Webinar Series: Keeping Financially Ahead of the Curve

Note: After registering, you will receive a confirmation email containing information about joining the webinar.

1. “What financial assistance and government grants can I access?” on Wednesday 6 May 11.00am – 11.45am with Ed Macartney 

The first webinar will examine the government assistance available whilst also discusses the changes to superannuation rules. Details are provided below and please extend this invitation to your family and friends.

Register for Webinar #1: 6 May @ 11am


2. “Everything you need to know about dealing with home loans and banks during COVID-19” on Wednesday 13 May 11.00am to 11.45am with Emily Jenkins

Our second webinar is all about what you need to know about managing your home loan and dealing with banks during COVID-19. This includes what you should know before putting your home loan repayments on hold if you are experiencing financial stress due to COVID-19, what sort of interest rate you should be paying (if you’re paying more than 3% pa you’re paying too much!), how to go about refinancing your home and whether you should be looking at fixed rates. Plus we will include bonus tips on managing a family budget while in isolation.

Register for Webinar #2: 13 May @ 11am


3. “What impact will Coronavirus have on investment markets and my retirement?” on Wednesday 20 May 11.00am to 11.45am with Ben Hatcher & Tim Gray

Our final webinar will help you gain an insight into investing for retirement income in uncertain times, what a post pandemic economic recovery might look like and the longer term impacts of COVID-19 on retirement planning. 

Register for Webinar #3: 20 May @ 11am


We look forward to you joining us at our webinar series and if you have any questions or need help with the technology please call us on 02 4455 7800.


Tailor-Made Financial Planning Pty Ltd ABN 33 088 879 270 trading as Tailor-Made Financial Services is an Authorised Representative and Credit Representative of Hillross Financial Services Limited ABN 77 003 323 055, AFSL 232705.  Any advice contained in this email is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters. This email, including any attachments, may contain information that is confide ntial, commercially sensitive and may be subject to legal privilege. If you are not the intended recipient you must not read, use, disseminate, distribute or copy any part of this email, disclose its contents to any other party, or take any action in reliance on it. If you have received this email in error, please contact the sender immediately and delete this email. Tailor-Made Financial Services does not warrant that this email or any attachments are free from viruses or other defects. Please ensure that you check for viruses and defects prior to opening any attachments.

Along with the horrible human consequences, the coronavirus pandemic is having a huge impact on the way we live and as a result investment markets.

To read more about the Q&A from an investment perspective by Dr Shane Oliver, click on the link below:-


Our thoughts are with you all at this time, stay safe.

Tailor-Made Team

Help for local people severely affected by the recent bushfires

With support from AMP, Tailor-Made is able to offer financial advice at no cost to assist those who have suffered severe financial or personal loss from the bushfires. This can help with managing both the immediate impact and future planning as people begin the process of rebuilding their lives.

Pro-bono financial advice

With the support from AMP we are able to offer pro bono advice to Australians who have been severely affected by crisis.

The recipients of the advice will not be charged for any costs associated with the advice.

The program is open to any bushfire affected Australian who:

- Has been impacted by the bushfires in Australia since 1 November 2019 and accesses this offer by 30 June 2020 (unless extended)

- Has had one of the following impacts from the bushfires:-

  • They have been seriously injured or their dependant, partner or immediate co-habiting relative has been seriously injured or died as a result of the bushfires
  • Lost their primary place of residence or it is uninhabitable
  • Lost their business

If you have been impacted and need help, or want to understand what assistance is available, please contact us.

The pros and cons of investment bonds

Also called insurance or growth bonds, investment bonds can be a tax-effective way to save for something big.

If you’re saving for a particular goal, looking for an alternative to super, or want to ensure those who matter most are taken care of after you’re gone, investment bonds (also known as insurance or growth bonds) may have benefits while potentially reducing what you pay in tax.

Read more

What kind of money parent are you?

Many parents approach the topic of money differently, but could your way of doing things influence your kids’ success?

The majority of Aussie mums and dads recognise that they’re accountable when it comes to shaping their children’s perspective around money matters.

Read more

2019-20 Federal Budget

2019-20 Federal Budget roundup - find out how the measures announced in the 2019-20 Federal Budget could affect you

Here’s a roundup of some of the key proposals put forward in the Federal Budget. We take a look at how they might affect your financial goals — whether you’re starting out in your working life, building a career, having a family, or moving toward or living in retirement.

Remember, at this stage these are just proposals and not yet law, which means things could change as legislation passes through parliament.

To read more, follow the link: 2019-20 Federal Budget roundup


Tailor-Made Proudly Sponsoring Milton Show Girl 2019 Entrant - Prue Nee

Milton Show 2019 - Proud Sponsors

Tailor-Made Financial Services are proud sponsors of the Milton Show and have been for many years. Tailor-Made is sponsoring Milton Showgirl 2019 entrant - Prue Nee. We wish Prue and all the entrants the best of luck! We hope you can make it to support the Milton Show at Milton Showground between Friday 1 March and Saturday 2 March - to find out more, click on the link below for the full schedule: http://miltonshowsociety.com/



Holiday budgeting tips - How to avoid a travel debt hangover

Holiday budgeting tips - How to avoid a travel debt hangover

We’ve all had the feeling. You step off the plane from Bangkok still buzzing, images from your holiday flitting through your mind—the Parthenon, Big Ben, the Eiffel Tower.

What a trip…you’re not going to kiss the tarmac or anything but it’s good to be home! You post the final selfie to Instagram on your mobile but as you flick back to the home screen you notice your banking app. A nagging thought disturbs your post-holiday reverie.

You haven’t logged on since you left Australia. But it was all so slick. The days of sewing travellers’ cheques into your pants and wiring FedEx cheques around the world are long gone. Even the little Thai fishing village had a workable ATM that pumped out baht. And pretty much everywhere accepted your credit card. Luckily you extended the limit before you left, all it took was a few clicks. You also vaguely remember setting a daily budget…that didn’t last long. But hey, you’re not in Rome every day of the year.

Hang on though…you did hit it pretty hard in London’s West End. And then there were the five days at the Airbnb near Lake Como. After all, if it’s good enough for George and Amal, it’s good enough for you. Come to think of it, the previous week scooting up and down the French Riviera wasn’t cheap. And way back at the start of the trip those Sangrias in Barcelona kept on coming…

Slowly your heart sinks and you close the screen down, hastily shoving the phone back in your pocket. It can wait another hour at least, at least until you’ve got home and brewed a strong cup of coffee.

You’ve heard of jetlag, now brace yourself for debt-lag
We know how to avoid jetlag. Stay hydrated, get as much sleep as possible and go easy on the complimentary inflight beverages.

But what about debt-lag? You don’t want to arrive back home with a spring in your step but a hole in your wallet.

And it doesn’t have to be the trip of a lifetime. Even if it’s just the annual family holiday down the coast, it’s all too easy to let your spending get out of control.

Here are a few tips you might want to consider that could help you avoid a travel debt hangover.

Budgeting tips before you go…
• Pre-pay the big-ticket items. Look for good deals and pay in advance for flights, accommodation and tours. The more you can pay for before you go, the less you’ll have to pay for at short notice with a potentially hefty local mark-up.
• Do your homework on fees and charges. You may want to give yourself a choice of how to pay—a debit card with lower fees, a pre-paid travel card so there are no surprises and a credit card for emergencies.
• Work out your holiday budget. Think about how much you’re willing to spend—it could help to set a daily limit and an overall limit (and stick to it!). Sometimes your choices about where to travel and where to stay can have a knock-on effect. If you’re based on a resort island or in a small hotel room with no kitchen facilities it could be difficult to source reasonably priced groceries and save money on food.

…budgeting tips while you’re travelling…
• Keep track of how much you’re spending. If you’re good at budgeting, there’s no reason to let things slide just because you’re on holiday. And if you’re not so good at budgeting, a holiday could be the ideal time to start getting into the right habits.
• Use the right card. Pre-loaded travel cards are getting more popular and mean you don’t have to stress about the exchange rate. Credit cards are convenient but represent temptation. If you’re going to use credit, make sure your card is appropriate for travelling. Some cards charge an international transaction fee as well as not giving you any control over your exchange rate.
• Make smart choices. Sometimes local merchants will give you the choice of paying in the local currency or Australian dollars. Converting to Aussie dollars could cost you more as you may not get a favourable exchange rate.

…and budgeting tips when you get back
• Pay off your credit card as soon as you can. Be wary of minimum repayments—this only drags out the debt for longer and increases the overall interest charges. If you can cut back in other areas you could potentially pay off your credit card debt earlier and avoid paying interest.
If you’re looking at budgeting for a holiday, we can help you manage your money more effectively.