Superannuation
• • • •	The cap on concessional contributions to superannuation will be reduced by 50%. Effective from July 1 2009, the limit for concessional contributions will be $25,000 per year for people under 50 and $50,000 for people over 50. If you are contributing more than the new cap amounts, you will need to review your contributions strategy before July 1 2009 in order to avoid paying excess contributions tax. There is a window of opportunity to make additional concessional contributions up to the current cap amounts of $50,000 and $100,000 before July 1 2009. The government is temporarily reducing the co-contribution matching rates, effective from July 1 2009.

Tax
• • • •	The income tax threshold for the 30% tax rate has been increased from $34,000 to $35,001, effective from July 1 2009, and to $37,001 from July 1 2010. The 40% tax rate for incomes between $80,000 to $180,000 will been reduced to 38%, effective from July 1 2009, and reduced to 37% effective from July 1 2010. The Medicare low Income threshold will be increased. The Private Health insurance rebate will be means tested for middle to high income earners according to age.

Pensions
• •	The qualifying age to increase will increase from to 67 from July 1 2023. From 20 September 2009, legible single pensioners will receive an increase of $32.49 per week and full rate couples will receive an extra $10.14 per week.

First Home Buyers Boost
•	The First Home Owners Boost has been extended for another 6 months.

Paid parental leave
•	Government funded paid parental leave will provide 18 weeks post natal leave paid at the Federal minimum wage (currently $543.78 per week).

Share Market Update

Nigel Stevenson
Senior Financial Planner
Court Financial Services
Wednesday May 13th 2009

After a tough start to the year, the current share market rally is both uplifting and encouraging. Since March, the S&P/ASX 200 Index has increased by 25% and the US S&P 500 Index is up 37%.

Finally we are seeing some rewards for being patient and staying in the market and we may now be over that worst. However it is still important to be cautious. Some analysts believe that that current rally is out of kilter with global economic conditions. They expect a correction to occur once investors feel nervous again following the release of weak economic data and earning reports that are anticipated in the lead up to June 30.

There is hope the gains made over the past eight weeks can be sustained because that the market may have already priced in the full extent of the fall out from the global financial crisis.

It is hard to know for sure how long the rally will continue and how significant a correction may be if it does occur. We do know that trying to time your way in to and out of the market is a very risky strategy. Investors willing to re-enter the market at this time, should do so with a long term view and the selection of stocks must be carefully considered.

Please do not hesitate to contact me if you have any questions regarding the current share market conditions.