How tax cuts can backfire on your finances

Cash windfalls can come with a psychological trade-off if you aren't equipped with a good strategic plan — and the willpower to stick to it.

Aleks VickovichWealth editor

Oct 13, 2020 – 3.00pm

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A flagship part of last week's budget was the $17.7 billion in tax relief brought forward by the government in the hope people would spend the unexpected gains, giving the economy a much-needed boost.

The changes should deliver at extra $2745 a year to those earning between $90,000 and $120,000, while those earning between $48,000 and $90,000 will gain up to $2295.

Aleks Vickovich leads the Financial Review's coverage of wealth management, specialising in the business and regulation of investment markets, financial advice and superannuation.