What is Tax Indexation and What Does It Mean to Me?

What is Tax Indexation and What Does It Mean to Me?

A change in income indexation has affected Centrelink payments and entitlement thresholds. The new indexation means you can earn more without impacting your pension amount: 

• Annual maximum work bonus changed from $7,800 to $11,800 
• New pensioner now has an upfront credit of $4,000 

This is fantastic news, as it can open doors to additional opportunities and benefits for Australians of all ages. 

For example, with the increased income threshold, you might now qualify for a Healthcare Card (previously unavailable due to mean test), gaining access to concession entitlements such as discounted medical care and prescription and discounts on various services, including public transport, registrations and other utilities such as electric and gas. 

However, knowing that these changes might also affect your tax obligations depends on your individual and household circumstances. Furthermore, the changes could introduce added complexity to your tax and reporting obligations if you have a more complex and sophisticated wealth-building strategy. 

What To Do Next?

These changes are complex, and can be overwhelming, and that’s where a financial advisor can help. We can help you understand the full impact of the new indexation on your specific situation, clarify any potential tax implications, and devise a strategy to maximise the benefits while minimising any drawbacks.

To book a 30-minute, no-obligation consultation with one of our financial advisors and see how we can help you take advantage of the new indexation changes, please click the link below:

https://outlook.office365.com/owa/calendar/TheHopkinsGroup@thehopkinsgroup.com.au/bookings/s/OdPFzcue_0SMyGuMNQXvSg2

Alternatively, you can request a callback by emailing us on  info@thehopkinsgroup.com.au or call our reception on 1300 726 082 to secure an appointment via our reception staff.