The five queries popular with advisers
BT has shared the top queries it is receiving from advisers in the most recent quarter.
Problems included downsizer contributions into superannuation, the Senior Health card and inflation’s impact on indexation.
The top five queries received by BT between October and December 2022 were:
- Work bonus increased to ease of cost of living pressures and labour shortage
- Inflation impacts on indexation of superannuation thresholds
- Downsizers and age pension
- Increase to income thresholds for Seniors Health card now law
- Federal Budget announcement on increasing childcare assistance
The work bonus, the top query asked by advisers, related to a $4,000 bonus which incentivized Australia’s seniors to earn more income from work. Those who were eligible for the Age Pension could now earn up to $11,800 from working without reducing their pension.
This was increased from $7,800 and had been carried out in a bid to reduce the cost of living pressures on seniors and encourage them to rejoin the workforce to relieve labour shortages.
Tim Howard, technical consultant at BT, said: “While the increase to the work bonus income bank is a welcome one for many clients, how it actually works across this current financial year, and the next one, is resulting in queries from advisers. They are seeking clarity on how their clients are impacted individually”.
Regarding indexation, BT said this related to the superannuation thresholds and whether the general transfer balance cap would increase. This was expected to be raised as high as $1.9 million from 1 July, 2023.
He added: “If you have clients who are planning to start a retirement income stream before 30 June 2023, it is worth considering if this would lead to the best outcome for them. Would they be better off delaying the commencement of the income stream until after 1 July, 2023, so they can gain the maximum indexation benefit?”
AUTHOR
Laura Dew
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