Matrix Norwest – June 2021 Bulletin

Matrix Norwest – June 2021 Bulletin

A message from our Partners

‘The secret of change is to focus all your energy not on fighting the old, but on building the new.'”

What an eventful first half of 2021 it has been with a handful of our team reaching the 15+ years employment milestone, welcoming new team members as well as navigating the transition of Rob’s retirement as an adviser. We are excited with the possibilities ahead for the rest of the year and we look forward to catching up.

For this bulletin, we have provided a summary of a number of the upcoming tax changes and included an update on the markets.

Best Regards,

Matthew Stevenson, Rob Pedersen, Alison Stevenson and Lachlan Sue
Partners, Matrix Norwest

Happy Retirement

‘Retirement is not the end of the road.
It is the beginning of 
the open highway.’

It is a bittersweet time as we wish our Principal Adviser, Rob Pedersen, a happy retirement from advising clients day to day. It is well deserved after over 40 years of assisting individuals and businesses with their investment and insurance needs.

Our clients will always remain forefront to all that we do and value and with that in mind, your primary team going forward will be Matthew & Alison Stevenson and Lachlan Sue. Rob is remaining an active member of our investment committee and on the Matrix Norwest board.

Rob & Ann, enjoy your freedom and unlimited golf!

Please watch a special message from Rob about his professional future.

Welcome Back

After 8 months of maternity leave, we would like to welcome Maria Lado back to the team.  As many of you would know, Maria has been with Matrix Norwest for over 16 years and brings with her an unrivalled passion for client service.

We are incredibly excited to have her back in a role which will see her sit across all aspects of financial services within our business, from financial planning to tax and accounting. We have no doubt she will thrive with these new responsibilities and will continue to be an invaluable asset to servicing our clients.

As the 2021 financial year draws closer to its end, it is important to keep in mind the raft of changes that will come into effect from 1 July 2021 for individuals and businesses.

Personal Taxes

– Stage 2 of the government’s personal income tax plan continues to roll out and the government has extended the low to middle income earner tax offset for another year.

Business Taxes
Corporate Tax Rule

– A significant change for businesses coming up on 1 July 2021 will be the change in corporate tax rate from 26% to 25% for base rate entities (broadly applying to small-medium sized trading companies).

Immediate Asset Write-Off

– The immediate asset write-off provisions were extended to 30 June 2023, allowing small to medium sized businesses immediately write off depreciable assets.

Single Touch Payroll
– Employers will now have to report closely held payees through single touch payroll from 1 July 2021. The eligibility for concessions that applied for micro employers will also change and these employers will now require exceptional circumstances to be considered for concessions here.

Superannuation Guarantee

– The superannuation guarantee rate is increasing to 10% from 1 July 2021 and will continue to increase by 0.5% every year until the 2025 financial year where it will reach 12%.

Superannuation Cap Changes

– There are also several superannuation caps that are scheduled to be indexed from 1 July 2021.This means the following:
– The concessional contributions cap for the financial year will be $27,500
– The non-concessional contributions cap for the financial year will be $110,000
– The transfer balance cap will be indexed to $1.7 million for pension balances. (If you have already commenced a pension in one of your superannuation funds at any point, you will now have your own individual transfer balance cap)
– The total super balance cut off point for making non-concessional contributions will be $1.7 million.

Minimum Pension Payments

– Finally, the government announced in a media release on 29 May 2021 that the minimum superannuation pension drawdown relief will be extended for another year, meaning pension minimums will remain effectively half of what the Superannuation legislation would otherwise require them to be until 30 June 2022.

For any questions you have in relation to any of the upcoming changes, please reach out to the team at Matrix Norwest.
The financial markets have run nicely, once again, reaching many new all-time highs. Naturally, as we all have come to expect when the markets reach unchartered territory, the media will seek to find its next apocalyptic take on why the system will soon fail.  It appears the latest crisis in waiting has been the rise of inflation, with the United States seeing the figure reach 4.2%, the highest reading since 2008.  The concern is that continued rising inflation will erode the real returns of any investments or market productivity.

To address these concerns, we need only look back historically to find a sense of comfort while we retain our steadfast investment principles.  In the last 60 years the US S&P 500 valuation has increased by 70 times.  Meanwhile, the US consumer price index rose only 9 times in the same period. This teaches us that the innovation of the world’s largest and most successful companies has always allowed them to find a way to deliver successful outcomes for shareholders. To this extent, as we have always done, the team at Matrix Norwest encourages you to stay disciplined as the markets traverse new heights, and to speak to your adviser if you have any concerns.