The Federal Budget of this year has not had any major impact on financial planners and their clients, which is a positive development for planners.
According to the FPA, this means planners can continue to help their clients and grow their businesses.
Sarah Abood is the chief executive of FPA. She stated that it was an opportunity for financial planners after many years of change.
FPA welcomes several Budget initiatives, including tax offsets to small businesses, and additional support for digital transformation, staff upskilling and financial planning.
The $1 billion Technology Investment Boost will be used to encourage small businesses to become digital.
A bonus 20% deduction would be allowed for small businesses that have a lower annual turnover than $50 million. This includes portable payment devices and subscriptions to cloud-based service. A $1 expenditure would equal a $1.20 deduction.
Jane Rennie, CPA Australia's general manager for international affairs, stated that the technology investment boost as well as the skills and training boost were welcome. These programs are complementary and will make Australia a digital leader.
"What is missing is measures that make it easier for small business to get professional advice.
"The government has missed an opportunity to help businesses increase their resilience to handle future shocks and improve profitability."
The Government stated that the temporary decrease in the minimum income drawdown requirement to super pensions would be extended until June 2023. This was for the 2019-20 to 2021-22 income year.
John Perri (AMP's chief of technical strategy) provided additional clarity.
"This measure will be applicable to account-based, transition into retirement and term allocation superannuationplans.
This measure is not mandatory. To better understand the implications of communications from pension providers, individuals should carefully review them.
Abood stated that additional initiatives needed to address housing affordability and women’s economic security, and that the ALRC Review and Quality of Advice Review would be of great concern to the association in this year's review.
Abood stated, "We also look forward the Budget Reply by the Opposition later in the week."
