Be ready for the July 1 superannuation changes
Wednesday, 31 May 2017 15:01
One of the most significant variations to Australia’s compulsory superannuation scheme since it was introduced in 1992 is about to impact many across the country in an attempt by the Federal Government to make the superannuation playing field fairer and more equitable.
In summary, some of the major changes include:
So, what does all this mean to the average Aussie?
Firstly, if you have the funds available before July 1, consider if its right for you to take advantage of the one-off option of bringing forward three years’ worth payments up to $540,000. You may not get this opportunity again and you may be able to add to your super balance without penalty. This is also the time you may want to consider other investment types because these changes mean that superannuation may no longer be the best option for some people.
While superannuation has always been regarded as a relatively low-risk investment, and it is still in many ways, the benefits are somewhat reduced. There are other ways to save for your retirement – the sharemarket and property investment to name two – that you might want to consider as part of your portfolio.
This means tax compliance and making decisions is likely to be a little more complicated so, you should consider asking a financial advisor for help. A good advisor will offer you investment alternatives, talk through the pitfalls and benefits of different strategies and make sure you are maximising your hard-earned dollars.
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Make an appointment now by calling 4262 9050 or email our team