If there is one thing most of us have in common at the moment, it is how tired we are all feeling. The Covid Shutdown has left many of us feeling quite worn out. A tired mind can make tired decisions, and so in our last article for the 2019/2020 year, we thought we would write about the best way to make good financial decisions.
If 2020 was a normal year, then this week we would be writing about the 2020 Commonwealth Budget. The 2020 Budget was due to have been delivered earlier this month. However, the Commonwealth Government made the sensible decision to delay the Budget until later in the year, due to the uncertainty about Commonwealth revenues and expenses that the COVID-19 crisis has created.
Amid the raft of measures announced by the Commonwealth Government last month, one of the more contentious was the decision to allow limited access to superannuation benefits to people who are ‘under-age.’ This change took effect from Monday of this week. Whether withdrawing makes sense in your case depends very much on your unique situation.
This week we thought we would change tack a little. As we all continue in a version of lock down and with Easter now behind us, most schools have reverted to home learning. So, we thought we would provide a little lesson in basic financial management ourselves. If you or someone you know is home-schooling someone, you might like to use this as a lesson. If not, you can always enjoy the lesson for yourself.
Over the past month, the Commonwealth Government has announced and commenced implementing economic stimulus measures that involve the Commonwealth spending (or rebating) more than $200 billion. A fair question to ask is: where do they get the money for that? The answer is a happy one that should be reassuring.
Last week, we discussed the stimulus package that had been announced but not yet passed through Parliament. As we forecast, the Commonwealth Government then announced a second round of stimulus measures. Both packages were passed by Federal Parliament earlier this week.