Our office will be closed for the Christmas and New Year period from 5pm Friday 21st December until 8.30am Wednesday 2nd January 2019.
The office will be closed from 3pm 23 December until 3 January 2017.
As you may have heard, the UK has voted to leave the EU with 51.9% of the votes.
Garry Burton has advised that we will not have any knee jerk reaction to this decision. We will be reviewing and revising our position closely for the time being and will advise you if we believe there will be an impact on you, our client.
We have been wary of the European market for some time, therefore have been limiting investment exposure in that area. In other words, we do not believe this decision should impact too much on any of our clients, however we do expect to see continued volatility of the local investment markets as a result of this vote.
A report from Fidelity International stated:
The UK has voted to leave the EU, according to media reports. What does this mean for you and your clients?
Key consequences of this decision include:
- Article 50 of the EU constitution, the law governing the process of the UK’s divorce from the EU, will be triggered at some point
- This will start the two-year process to determine the terms of the UK’s EU exit, including its access to the single market
- Pressure will mount on Prime Minister David Cameron to resign
- The result is likely to hamper the UK economy to some extent
- The ECB is likely to expand its asset purchases, to reduce the risk for investors
Please find a presentation to use with your clients, explaining the economic and market impact of this decision. Click to view presentation.
If you wish to discuss this issue further, please do not hesitate to contact Lee and I can arrange a time for you to speak with one of our Financial Advisers.
The federal budget has been presented and the following is a brief on the superannuation changes. If you wish to discuss further, please do not hesitate to ring Lee on 02 6884 5788 to make an appointment.
Please note the following superannuation changes coming out of the 2016 Budget that may impact you:
- there will be a $1.6 million limit on superannuation pension balances applied to all current and future account based pension from 01 July 2017.
- Tax exemption for earnings in all current and future Transition to Retirement Pensions will be removed.
- Lifetime non-concessional contributions (after-tax) limited to $500,000 will apply to all future non-concessional contributions from 01 July 2017.
- Current maximum concessional contribution limit of $30,000 and transitional limit of $35,000 both reduced to $25,000 from 01 July 2016. Those with superannuation balances lower than $500,000 can carry forward any used amounts for five consecutive years.
- anti-detriment payments relating to the death of a member will cease from July 1, 2017.
On a more positive note:
- access to the low income spouse superannuation tax offset will be increased by the raising of the income threshold for the low income spouse from $10,800-$37,000, and
- a new low income superannuation tax offset will be introduced for people with an adjusted taxable income of up to $37,000 a year in the form of a non-refundable tax offset to the superannuation fund receiving the concessional contribution
To discuss how these proposed changes may impact your superannuation and retirement planning position please contact our office.