The Government released its federal Budget on Tuesday, 3 May 2016.
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
With over a dozen super-related proposals in the Budget, the proposed changes may have a significant effect on some members. Some of the key changes include
- reductions on the amount of money you can contribute to super, especially at concessional tax rates
- introduction of a “cap” on the amount of money you can transfer to an income stream (pension) account at retirement
- lowering the income threshold for high income earners (from $300,000 pa to $250,000 pa) where the contribution tax rate changes from 15% to 30%
- removal of the “work test” for older members.
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.