Financial advisers can position themselves and their clients to benefit from legislative changes introduced with the start of the new financial year, according to KnowIT-owned compliance tool Wealthdigital.
In a statement, Wealthdigital (formerly branded as Desk Caddie) said the beginning of the 2018-19 financial year marked the commencement of several new laws, including the ability to make withdrawals under the First Home Super Saver Scheme (FHSSS).
Wealthdigital technical manager Rob Lavery said that financial advisers need to be across these changes, and added that they present “significant opportunities” for advisers to use the new rules to help clients.
“It is important to keep in mind that the ability to claim deductions on personal contributions became widely available in 2017-18. Combining personal deductible contributions and the FHSS scheme should be a strategic consideration for all income-earning clients looking to buy their first home,” Mr Lavery said.
“Changes are not limited to superannuation. The new low and middle income tax offset (LAMITO) will mean a tax saving for every client earning between $20,594 and $125,333. Furthermore, every client earning more than $87,000 will benefit from the upper threshold for the 32.5 per cent tax bracket being increased to $90,000. These tax savings provide opportunities for clients.”
Mr Lavery added that other changes also took effect from 1 July, and that these too can provide new avenues to assist clients.
“Every 1 July brings change. It is crucial for planners to be on top of the major amendments so they can help their clients take advantage of these new opportunities,” he said.
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