9 Feb 2017
Social Security: Fringe Benefits
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
From 1 January 2017, the total value of the reportable fringe benefits received from an employer will now be counted towards qualification for social security benefits.
Previously only half (specifically 51%) of the total value of the reportable fringe benefit was included in the assessment.
This together with 1 January 2017 changes to qualification for Age Pension is all deliberately focused on reducing welfare payments to the middle class.
Assuming that this pattern continues over the next two decades, it is clear to see that only the very poor will qualify for some Government assistance while the rest of us can say goodbye to the Age Pension.
Just another reminder that it is you who needs to save and invest for your future.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.