One of our lenders hosted a breakfast the morning after the 2016 Federal Budget was handed down earlier this month, and used the opportunity to give us both an economic update and their analysis of the budget and the impact it will have. For Tim Kerin, one of our brokers, there were a few key take-aways from the analysis:
* If you're self employed, or thinking of becoming self employed, it's possibly worth re-thinking the structure of your business or organisation. You may have decided NOT to use a company based on the difference between the 30% company tax rate and your own expected marginal tax rate as an individual. With the company tax rate slated to gradually decrease to 25% over the next decade, perhaps it's worth revisiting that calculation and decision. If you'd like to discuss this matter in detail with a trusted adviser, we would refer you to our Financial Planner, Brad Cochrane, or accountants, AMHR.
* If you're thinking about making an investment in real estate, whether commercial or residential, there's likely now a smaller difference between doing this through your company and doing it through your self managed super fund. We'd refer you to the same two advisers above to discuss this further if you think it might impact you.
* If you're currently making voluntary contributions to super as part of a transition to retirement, you definitely want to revisit the matter and check whether you're using the right numbers. Again, the above advisers can help you figure this out.
For further analysis and thoughts from Mortgage Choice, visit this blog post.