On Tuesday, 9th May 2017, the Government released its Federal Budget for the 2017-18 financial year.
We have again prepared a fact sheet outlining the main super changes proposed in the Budget along with a commentary on how those changes may impact AvSuper members.
The impact for you
As expected, and in contrast to previous years, the Federal Budget did not include a lot of direct changes for superannuation. However, the housing affordability measures proposed by the Government may impact on super funds and relevant members.
Some of the key changes include
- being able to contribute additional money resulting from the sale of a family home once you are over 65
- being able to use some non-compulsory super contributions towards a home deposit in the First Home Super Savers scheme
- an increase in the Medicare levy to 2.5%
- creation of a single body to manage financial industry disputes
The scope of the proposed changes is such that different groups of members are likely to be impacted in different ways so it is important to review the Budget, and the related legislation as things progress, in line with your personal situation.
Before making major decisions about your super and/or retirement income stream, please remember these changes are not yet law and may well be altered and delayed. We suggest you get personalised advice from our Member Advice Consultants to better understand your options and their implications.