Suite 8 / 260 Auburn Road, Hawthorn 3122
Phone: 03 9214 4100
Fax: 03 9818 6008
enquiries@trumpetfinancial.com.au
 
 
eWombat Search
  LATEST FINANCIAL NEWS
 
Hot Issues
Ranking of the world's best: Taking it personally
The value of advice - Behavioural Coaching
Our Advent calendar for 2018
Compliance, tax advice in strongest demand from SMSFs
Stop!! Don't do a paper Budget, use our online budgeting tools instead.
Franking credit policy to dent retirement savings by 15 per cent
Information needed to be the BBQ expert.
Hungry for income? Choose carefully.
Retiree self-protection: A volatility-and-downturn 'bucket'
How financial advice helps create wealth.
Superannuation gender gap narrowing, research shows
All the stats you need to see how Australia is going.
Market downturns, like this one, are to be expected
ATO claws back $850m in unpaid SG in FY 17-18
‘Hefty penalties’ with TRIS payment failures, SMSFs warned
The global financial crisis: Behind us but far from over
'Huge' professional risk in SG delays, big four firm warns
What a financial adviser can add to your portfolio's returns.
ATO updates crypto guidance
Reverse mortgages: Short-term gain, long-term pain
ATO set sights on 27,000 funds in ongoing crackdown
ATO zones in on hundreds of newly created reserves
A dynamic approach to retiree spending and drawdowns
Your investment freedom-maker
Living expenses for retirees on the rise
Still a long and bumpy road to travel on the way to a U.S.-China deal
Smart spouse investing
How financial advice helps create wealth.
Articles archive
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 of 2016
Articles
The gymnastics of keeping your portfolio balanced
Market Update – August 2016
Stop!! Don't do a paper Budget, use our online budgeting tools instead.
Advisers the key to retirement stability, research shows
The toughest tasks for self-managed super
Lawyer warns on ‘adverse’ death taxes with insurance
Don't get distracted by super changes
A savings mirage?
Market Update - July 2016
The three biggest economic issues likely to affect markets in 2016
SMSFs warned on looming property ‘tough times’
Diversification counts when uncertainty beckons
Strong economic data stablises markets
Starting a super pension in 2016-17?
Market Update - June 2016
ATO extends looming SuperStream deadline
ATO's deadline for review non-arm's length LRBAs extended
A paradoxical relationship: The self-employed and super
Fresh SMSF documentation warnings surface
Don't get distracted by super changes

 

It is understandable that the continuing widespread coverage of key federal Budget proposals for super may distract some .....


..... super fund members from focusing on their contribution strategies for 2016-17. 



       


 


The two proposed measures getting much of the attention are the indexed $500,000 lifetime cap on non-concessional contributions (intended to include contributions from July 2007) and the reduction of the annual cap on concessional contributions to an indexed $25,000. 


As these proposals work through the parliamentary process, we can expect much more debate and commentary along the way.


In the meantime, life goes on for super fund members and so should their strategies to contribute to super where appropriate. 


Many fund members would now be thinking and taking specialised advice about whether the Budget's super proposals are really going to affect them over the next year or so even if passed into law in their present form. Much will depend on a member's personal circumstances and the particular proposals in question. 


First regarding the proposed $500,000 lifetime cap on non-concessional contributions, which is proposed to take effect from Budget night, May 3. (The Government wants the lifetime cap to replace the standard $180,000 non-concessional annual cap.) 


A call to the tax office will readily give fund members the total of their non-concessional contributions made between July 2007 and June 30, 2015. And your super fund can immediately provide a list of any subsequent non-concessional contributions. A financial adviser could, of course, also provide you with this information. 


Fund members who have made extra-large non-concessional contributions in the past or are intending to do so are particularly likely to consider gaining professional advice - especially if the contributions will take them close to the planned lifetime cap. 


Regarding the proposal to reduce the annual concessional cap from $30,000 currently for members aged under 49 (or $35,000 for members 49 or over) down to $25,000. 


Critically, the Government proposes that this measure come into effect from July 2017. This means, of course, that members can maximise their concessional contributions in 2016-17 within the existing larger caps.


And before being worried about the possible impact on your contributions in 2017-18 and beyond, it is worth reviewing how much you have typically contributed as concessional contributions in past financial years. Concessional contributions comprise super guarantee, salary-sacrificed and personally-deductible contributions (where applicable).


 


By Robin Bowerman
Smart Investing 
Principal & Head of Retail, Vanguard Investments Australia
26 July 2016




1st-September-2016
Trumpet Financial Pty Ltd ABN 11 443 516 384 Corporate Authorised Representative (No 327756) of Aon Hewitt Financial Advice Limited AFSL 239183 ABN 13 091 225 642
Registered Address: Level 33  201 Kent Street, Sydney NSW 2000 | Sitemap | Disclaimer | Privacy Policy | About Aon Hewitt Positioning