Every year, it seems, they change the rules – the retirement age, the contributions cap, and so it goes on.
The most recent changes to superannuation include;
- Introduction of $1.6m cap on income streams with tax penalties if higher amounts are rolled over
- The division 293 income threshold for high income earners will be cut from $300,000 to $250,000 p.a. from 1 July 2017, to limit the concessions available to higher income earners.
- Reduce the non- concessional contributions cap from $180,000 to $100,000 per financial year
- Reduce the concessional contributions cap from $30,000/$25,000 to $25,000 per financial year, regardless of your age.
- Eliminate the anti-detriment rules, potentially increasing tax payable on death benefits to non-dependants.
- Everyone under the age of 75 will be able to claim a tax deduction for personal superannuation contributions made from 1 July 2017, regardless of employment status.
No wonder one in three Australians are concerned about legislative changes being made to super – what they mean and how to work with them.
It is a cause for concern, but it helps to keep it all in perspective, give all the factors their due weight – but no more – and adjust your game plan accordingly.
That’s one of the things we do for our clients, and it helps them feel much more confident about achieving their goals.
Please contact your Judge Adviser on 02 4032 7934 to support you with your superannuation.
Matthew McCabe is an Authorised Representative of RI Advice Group Pty Limited ABN 23 001 774 125, AFSL 238429. This editorial does not consider your personal circumstances and is general advice only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out.