To give you a flavour of what could be on the cards for your personal finances in 2018, we asked the experts at Bridges Financial Services what to look out for.
What might happen with interest rates?
Interest rates are always a hot topic for Australians keeping an eye on their personal finances. The short answer is that the cash rate set by the Reserve Bank of Australia (one of the main factors in determining interest rates charged by lenders) is not expected to change in the early part of 2018.
However, some commentators are predicting that the RBA may increase their rate later in the year. It’s worth remembering, though, that there are other factors in addition to the RBA’s cash rate that help determine interest rate changes.
With interest rates currently at a historic low, now could be a good time to pay off a bit extra on any loans you have.
Expect big changes to how you can make and receive payments
In early 2018, the New Payments Platform (NPP) is due to be launched by financial institutions across Australia, including CUA. So you can look forward to being able to make and receive payments much faster than before.
As well as faster payments, the launch of the NPP will make it much simpler to send and receive money. You’ll be able to use just your phone number or email address (known as a PayID), rather than bank account numbers or BSBs. This is good news for anyone who regularly pay friends or family for things like split bills at restaurants.
New opportunities for your super
Recent changes have opened up a new way for Australians to build their super while reducing their tax bill. Now, anyone1 can make voluntary personal contributions to super and claim a tax deduction. This is a big opportunity for anyone whose 2018 New Year’s resolution is to put more money into super.
In addition, from 1 July 2018, if you’re over 65 and sell a property, there may be a new opportunity to contribute more to your super. If the change is passed by parliament, you’ll be able to use some of the money from the sale to make a ‘downsizer contribution’ to super.
If you’re looking to make the most of your finances this year, speaking to a financial planner can help you get started. CUA partners with Bridges to offer members expert advice on their finances. Your first consultation with a Bridges financial planner is complimentary and obligation free.Book a consultation
1. Fund and age restrictions apply.
Bridges Financial Services Pty Limited (Bridges). ABN 60 003 474 977. ASX participant. AFSL No 240837. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner. In referring customers to Bridges, CUA does not accept liability or responsibility of any act or omission or advice provided by Bridges or its authorised representatives. Bridges is part of the IOOF group.