The government cannot keep their hands off super.

Since Keating introduced superannuation in the early 90’s there has been several changes, which has created an enormous amount of work for financial advisors. It creates uncertainty. So for the next 6 weeks or so until the May budget we will receive plenty of phone calls from many nervous retirees and superannuates. It’s all speculation at present, but it appears the government maybe considering increasing the tax on contributions for ‘wealthy’ Australians earning above $240,000, budget-and-superannuationchanges to Self Managed Super funds who own Property, changes to Transition to Retirement Incomes and, introducing a Capital Gains Tax when converting a super fund from Accumulation to Pension phase.

Will these changes be retrospective? Who is a ‘wealthy’ Australian?

The government says the changes won’t affect 98% of workers! Isn’t Superannuation all about encouraging Australians to save for their retirement in a tax effective environment! Australians need to have confidence in the super, and unfortunately this current speculation and innuendos will damage super once again. Will we see investors withdraw from the super system and create wealth by investing into negatively geared investment properties? A recent Galaxy Research conducted on 1,000 people on behalf of Sunsuper indicated that 57% were worried about the government rumoured changes to super will negatively impact them in retirement. We have one of the best Superannuation systems in the world. Let’s not tamper too much with it. Rest assured governments will continue to get their hands on a growing pot of gold.

Any changes to super will result in people seeking professional advice……. and a Specialist Self Managed Super Advisor.

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Thomas Jacks BCom (Acc), SMSF SpecialistTM, Adv. Dip F.S. (FP)
“I want to be able to assist clients with their investment and retirement planning by providing real strategy advice. It’s my aim to not only help my clients but to educate them by addressing the entire picture” Google Plus

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