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



Brisbane's arts and culture events centre stage

A CITY drenched in culture, Brisbane is again flaunting an arts and culture events calendar fit for a queen.

Homewares stores to fulfil your Instagram dreams

No Caption

You too can become an Insta-star with these fab stores.

Date nights under $50

Nothing is more romantic than a picnic with a cracking view.

NOT every date has to cost you a bomb.

Top 10 Brisbane experiences to cross off your bucket list

Do yourself a favour and get amongst the food truck scene. Eat Street is a great place to start.

A GOOD bucket list doesn’t have to span continents or cost millions.

Six mega sporting events you need to be at this year

Don't miss all the action trackside this season.

IF THERE is one thing Brisbane does damn well, it’s play host.

Six reasons to get to Brisbane this Autumn

The Brisbane Powerhouse has free comedy on Friday nights.

AUTUMN has to be up there with one of the best seasons of the year.

The best things to do in Brisbane are FREE. Yes, FREE

Mt Coot-tha is a seriously gorgeous way to start your day.

HEADING to the big smoke doesn’t have to come with a big price tag.

Cancer survivors fight for fitness

FIGHTING BACK: Cancer survivors can get stuck back into a fitness regime with a free program at WIRAC.

WIRAC helps survivors rebuild strength through free program

Winter in Warwick Art Gallery show

Jacqui Fink is bringing her extreme knitting to Warwick during Jumpers and Jazz.

What's on the way to the Rose City

Tailoring support for women

BETTER LIFE: Laura Skirrow and Chris Zerbe are bringing their Optimal Living workshop to Warwick on June 3.

Workshops to empower women to make well-being a priority

Local Partners

Book review: Mia Freedman's book meets her critics head on

IF AUSTRALIA does have a tall poppy syndrome, Mia Freedman has most certainly been a victim.

Model Bella Hadid's see-through dress shocks in Cannes

US model Bella Hadid attends the Cinema Against AIDS amfAR gala 2017 held at the Hotel du Cap, Eden Roc in Cap d'Antibes, France, 25 May 2017.

It’s like she’s become addicted to shock value.

No room for morbid fans

Chris Cornell.

Fans want to stay in the hotel room where Chris Cornell died

Star Wars' 1977 Stormtrooper head banger confesses

A Stormtrooper is responsible for the biggest blunder in a Star Wars movie. Picture: Supplied

Man in most famous blooper in Star Wars history breaks silence

Lyn's knock-out show gets her to next round on The Voice

ONWARDS AND UPWARDS: Lyn Bowtell is through to the battle rounds on The Voice.

'It was bitter sweet to win like that'

Report reveals progress on $319m airport upgrade

Aerials of the Sunshine Coast.Jetstar plane in front of the Susnhine Coast terminal, Sunshine Coast Airport.

Over two dozen government approvals needed for airport expansion

Lost dough leaves sour taste after company collapse

Kathleen and John Mahoney from Sugar and Spice Bakery were stung after the collapse of Cantro Pty Ltd and are still owed money.

Supermarket operator collapse leaves sour taste for bakery

Open for inspection homes May 25-31

Check out this weekend's homes open for inspection

How Toowoomba house prices compare in Australia

For sale sign in front of home.

Here's what $700,000 will buy you in Toowoomba, Brisbane and Sydney

One of Maryborough's most historic homes is still for sale

FULL OF HISTORY: Trisha Moulds is owner of the historic Tinana state known as Rosehill. The beautiful home is currently for sale.

It has been the scene of both joy and tragedies over the years.

Ready to SELL your property?

Post Your Ad Here!