This End of Financial Year is even more important to a vast number of Australians.
With significant Superannuation changes to the pension system, it is even more important to revisit how you save and invest. Key changes limit the amount of money that can be contributed to super. The Australian Tax Office has recently sent out blanket letters to most Australians, warning about these impending changes. Unfortunately some people have interpreted this as being in trouble with the ATO, and there are stories of 'little old ladies' panicking, and withdrawing all of their money out of their low or no tax superannuation funds.
You should always seek professional advice from your accountant or financial advisor. If you have under $1.6m in your superannuation balance, or even under $1.4m... dont do what the 'little old lady' did. The ATO letter went to many, and was just a warning shot letting you know changes are afoot.
If your balance is fine there is still some time to get your affairs in order.
There are changes to how much you can contribute with your pretax money (concessional contributions) which are currently aged based on the following limits;
These change to a lower limit of $25,000.
The next change is when you want to contribute from your after tax money (non-concessional contributions) where this limit is currrently $180,000. This limit will fall to $100,000 p.a which is significantly lower. There are a number of other nuances with these rules, and it is best you seek professional advice or read further here.
The Australian Superannuation system has been designed to provide an adequate income for Australians in their retirement and allows a number of tax concessions for you to get there. Superannuation is most likely the lowest tax structure to grow your money over time, and you should consider how you save with this in mind.
