Business

OPINION: Super changes to impact thousands

AFTER a year during which we had the Brexit and the election of Donald Trump, it may be difficult to recall that the 2016 Federal Budget introduced a raft of changes to superannuation which will affect thousands of Australian households from July 1.

While, politically, these changes were sold as being targeted at the rich, they potentially impact almost anyone currently contributing to or drawing from a superannuation account, such as those working and retired. Therefore, if you are in this category, it is important that you meet with your financial adviser before June 30, to consider how the changes affect you.

In summary, the changes impact:

  • Pre-tax (concessional) contributions and salary sacrificing,
  • After-tax (non-concessional) contributions,
  • Transition to retirement strategies,
  • Pension accounts,
  • Death benefits and
  • Defined benefit schemes.

For example, if you are considering selling an asset in the near future, the changes to the after-tax contributions rules may impact the timing of that decision and the use of the proceeds.

It is hard enough as a professional financial adviser to keep on top of the seemingly endless tinkering the government does with our superannuation system. How hard-working Australians are expected to keep up to speed is beyond me. This indeed is part of super's PR problem, in my view: People feel that super is not within their control and the apparent complexity and ever-changing rules create uncertainty and a disincentive for people to invest in their super.

The name itself puts people off. What on Earth does "superannuation" mean anyway? It sounds like a word made up by tax boffins. Why not simply call it your "retirement savings" or "personal pension" account? It turns out that "superannuation" is derived from "superannuate" - a 17th century term meaning to "render obsolete" by old age. Hardly inspiring!

Nevertheless, for most people maximising contributions to super throughout their working life, whether by salary sacrificing or even after-tax non-concessional contributions, remains the most tax effective means of generating wealth. So don't let the name or the rule changes put you off. Take advice from a qualified financial adviser before June 30 on the technicalities and get as much into super as you can afford.

For more details email campbell.korff@ybr.com.au. This information is general in nature and readers should seek professional advice specific to their circumstances.

Topics:  campbell korff financial advice northern rivers business northern rivers lifestyle superannuation reforms



Warwick community groups have tables covered

TABLE ART: Three art groups have put it all out on the table with these creations for Jumpers and Jazz.

Festival organisers hit on a brilliant plan to jazz up CBD tables

Why Warwick lost power last night

Pieces of the electricity lines came down when the driver knocked the pole.

The reasons behind Warwick power outages

'United front' for Southern Downs tourism

Tourism operators say the co-operation shown at Tuesday's council-led forum must continue for the regional tourism industry to thrive.

Operators keen to move forward

Local Partners

Pride on show for Carbal Art

Carbal Community Art Group formed in 2015 after the Jumpers and Jazz Festival, and they're back for another year.


Splendour goers leave nothing to the imagination

Ali Herden, Keisja Divett, Megan Magill and Cassie Durham, of Canberra at Splendour in the Grass 2017.

Sunny weather means the young gets restless at the festival

Working class? Man, Gympie's got the show for you

Jimmy Barnes

Aussie rock icons coming to Gympie for 150th celebrations.

What's on today at Jumpers and Jazz

COLOURFUL: Check out the cool range of events happening in town today.

An extreme knitting workshop, art@st.mark's and more

Eddie McGuire to come back as Footy Show co-host

EDDIE McGuire will return to The Footy Show as co-host alongside Sam Newman and Rebecca Maddern.

Channing Tatum’s cheeky $2400 sex toy prank

Channing Tatum in a scene from "Kingsman: The Golden Circle".

Channing Tatum went all out with his prank this time

Still downloading Game of Thrones? Expect a letter

You mean to tell me HBO want to protect one of the world’s most popular shows?

HBO title holds record as most illegally downloaded show

Sam Newman's Footy Show performance baffles panel

Sam Newman on the Footy Show

“Cat got your tongue tonight has it?”

OJ Simpson loses cool as he begs to go free

Simpson was convicted in 2008 of enlisting some men he barely knew, including two who had guns, to retrieve from two sports collectables sellers some items that Simpson said were stolen from him a decade earlier.

Tension at the parole hearing didn't stop OJ going free

Lead singer of Linkin Park, Chester Bennington, dies age 41

Coroner spokesman Brian Elias says they are investigating Bennington's death as an apparent suicide but no additional details are available.

Chester Bennington's body was found in LA at 9am local time.

Chester Bennington’s tragic Chris Cornell connection

Bennington sings at Chris Cornell’s funeral on May 26 in Los Angeles. Picture: AP

Bennington reportedly godfather of one of Cornell’s three children

Locky eyes next 'series' win

WINNING COMBINATION: Rugby league great Darren Lockyer is to launch his collection of house designs with Ausmar on Saturday at Caloundra.

NRL legend Darren Lockyer in Sunshine Coast partnership

Alex beach or bluff at your front door

ALEX LIVING: 9/252 Alexandra Pde, Alexandra Headland.

Beachfront unit among the picks of this week's auction line-up

Open for inspection homes 20 - 26 July

Check out this weekend's homes open for inspection.

Sunshine Coast shopping centre on the market

Coles-anchored centre in high-growth area listed for sale