At the time of writing, the Budget 2022 has just taken place and, what could have been considered a rather dull and lacklustre Budget in a Federal election year, has been viewed positively by the industry.
For them, it appears that ‘no news is good news’ with many commentators pleased that they will not have to contend with a whole raft of changes in the upcoming financial year.
Much of what was included in Treasurer Josh Frydenberg’s speech had been previously announced, particularly in the superannuation space where measures included the $450 per month income threshold and removal of the work test for non-concessional and salary sacrificed contributions to superannuation for individuals aged 67-75.
In the financial planning space, there were few major announcements but several one-off changes were announced to help Australia deal with the increased cost of living such as a $450 payment for low and middle income taxpayers.
However, there was disappointment that less had been outlined for women despite the Government publishing an entire Women’s Budget statement.
This included a lack of superannuation payments on Paid Parental Leave or measures around financial abuse, both of which had been canvassed for in the run-up to the Budget.
In its accompanying documents, the Treasury acknowledged the gender pay gap and superannuation gender pay but appeared to indicate this would narrow naturally as more women entered the workforce.
While it inevitably will, this is likely to take decades without assistance and there were steps that the Government could have taken to ensure it happened faster.
Advisers have also been warned not to rest on their laurels just yet as there could be still further measures announced between now and the Federal election in mid-May given there are several reviews ongoing on intergenerational wealth and retirement income.
