There’s a small window of opportunity before new rules stop you from adding as much to super as you can right now.
It’s crunch time, time to get advice before super as we know it changes.
From 1 July 2017, new laws will limit the amount that goes into super across the board. And that means you need to be prepared and you need to act before 30 June. After 1 July, the non-concessional contributions (NCC) you’ll be allowed to make into super will be significantly less.
What you should consider
You still have time to explore any opportunities you may have to boost your super and benefit from the concessional tax environment the super system currently provides.
After 30 June 2017, you’ll be restricted to adding up to $100,000 in after-tax dollars in any given year (or $300,000 if you use the bring-forward rule and add three years’ worth in one). On the other hand, you may be eligible to add up to $180,000 now or $540,000 if you add three years’ worth.
If you haven’t made an NCC within the last three years you may be able to boost your super by up to $540,000. And even if you have made an NCC recently, you could still be eligible to add an adjusted amount which may be more than you think.
Remember, you need to be under 65 to take advantage of the current rules and of course, you need to act before 1 July.
Should you convert other assets into super?
The answer to this question will be different for everyone, there’s a lot to weigh up.
For example, your money may benefit from super’s concessional tax environment which means you ultimately end up with more in your hand. But super is a long-term investment and you need to consider whether it’s the best place for you to invest.
Whichever way you’re leaning, it pays to speak with us before you decide what to do.
We can help you understand the ins and outs of the changing rules and how they’ll affect you down the track. We can show you how much money you could accumulate by investing in super now while the higher contributions rules still apply.
After 1 July, super will change quite dramatically so it’s worth looking at the opportunities you may have now. If you’re wondering how you could take advantage of the current rules it could be a good time to think about how you may structure your investments so you can meet your current needs and be better off down the track too.
It’s the final countdown…
As we’ve highlighted before, there are other changes coming to super on 1 July 2017. The rules will place new restrictions on transition-to-retirement pensions, super account balances and concessional contributions caps.
The good news is there’s still time to make use of strategies that may help you. Make sure you’re aware of all that’s changing and how it will affect you. We’re here to help and to simplify the jargon so you’ll understand exactly what the impact will be for you. Start a conversation with us today. We’re looking forward to helping you wherever we can.
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
