The first Tuesday in May is a big day for financial advisers. This is the day that the relevant Federal Government deliver their Budget for the upcoming financial year and beyond.

It is always worth remembering what the purposes of these Budgets are. Yes, they are undoubtedly political (perhaps especially the Budgets that immediately precede elections). But they also stand as a main way for the Government of the day to influence the working of the economy and even engage in a bit of social engineering.

This year’s budget is little different. Most of the major changes took place in the superannuation sphere, and so that is where we concentrate our analysis in this newsletter.