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Let us help you navigate the post-Budget super landscape

Posted by Pacesetter Financial Services

While the Government has flagged some changes to super in its recent Budget address, nothing is set in stone. Indeed, the changes at this stage are really just suggestions that will depend upon the outcome of the election and then if that proposed new legislation is passed through Parliament.

The post-Budget super landscape may be uncertain, but there’s no need to panic. Instead, we feel it’s the perfect opportunity for a discussion about your super opportunities, both now and in the future. There are at least three key areas where a discussion with us now will prepare you for making appropriate changes to your super strategy.

First, here’s a summary of the Government’s super proposals:

  • Concessional (pre-tax) contributions may be cut to $25,000 a year across the board
  • The higher concessional tax rate of 30% may kick in at the reduced annual taxable income threshold of $250,000
  • A lifetime cap of $500,000 for non-concessional contributions may be introduced
  • A $1.6m cap per person on tax-free retirement balances may be introduced, and
  • A 15% tax on earnings from a transition to retirement (TTR) income stream may be introduced.

While it’s still too early to act, it’s never too early to begin considering possible options, starting with these:

Tax Efficiency
Regardless of how the dust settles after the election, super is likely to remain the primary vehicle to accumulate wealth for a comfortable retirement. That said, it would be wise to spend time with us now in order to consider other wealth-accumulation strategies you may choose to implement to complement your super. With a little forward planning, you will be well-positioned to formulate a tax-efficient strategy and implement any changes in a tax-sensitive manner.

Asset allocation
If they go ahead, the Budget’s proposed restrictions on the amount that investors can contribute to super will place even more pressure on investment returns. The most important influence of your portfolio’s long-term performance is asset allocation. Talk to us about building an appropriately diversified portfolio that may help you work towards your financial goals and manage your investment risk.

Cost-effective implementation
There are a range of costs incurred with any investment portfolio. It’s important that you embrace the most efficient cost structure for your particular situation, as cost efficiency may enhance the bottom line of returns.

Even if it's not the right time yet to implement changes to your financial strategies, just by talking with us, you're much less likely to worry about the confused and confusing commentary in the media and around the community. Please accept our invitation to give us a call on (07) 3808 2808.

Pacesetter Financial Services and its advisers are Authorised Representatives of Fortnum Private Wealth Pty Ltd ABN 54 139 889 535 AFSL 357306 trading as Fortnum Financial Advisers.

This information (including taxation) is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Pacesetter Financial Services strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.