Federal Election – Robert Crane’s View

What does the Federal Election result mean to you and your superannuation fund?

We understand that the new Superannuation legislation proposed by the Coalition government, announced in May 2016, may be confusing.  This article will explain some of the changes more simply and how it may affect you.

Although the Coalition Government was voted in, the Senate will determine which changes will be legislated. However, we are confident that many of the proposed changes regarding Superannuation will not be legislated and common sense will prevail.

“I have been involved in the financial industry for almost 40 years, first as a Chartered Accountant for 25 years and now also as a Financial Adviser. During these years I have never seen a time where legislation has been backdated.

In the past, people who put their money in Superannuation were able to count on the existing rules being applied to the money they contributed to their fund”. Robert Crane, Principal.

The recently announced budget included components that breached that long-standing understanding and for this reason many people are very concerned about their superannuation funds and what the proposed changes mean to them.

Some of the proposed changes include:

  • Introducing a lifetime cap of $500 000 as non-concessional contributions made since 2007.
  • The abolition of the Transition to Retirement (TTR), tax-free status on earnings.
  • The general cap of $1.6 million in pension funds.
  • Reduction of tax-deductible contributions.

On the other hand some of the proposed changes were positive, which include:

  • Capacity for non-working people to contribute to Superannuation until age 75 and the change to the ‘work test’ for those people.

You may be thinking that these changes ‘won’t affect me’ or that ‘I am not sure what to do’.  In either case, the team at Wise Owl Financial is fully knowledgeable about the proposed changes and how it may affect you.

What usually happens in times of change is a loss of confidence and a lack of understanding, leading to a lack of enthusiasm to invest.  Regardless of what the legislation outcome will be, Superannuation is still by far the best and most effective way to minimize tax and increase your wealth.

Australians have one of the best Superannuation systems in the world, evidenced by the accumulated invested funds of over $2 trillion dollars into the system and it’s growing exponentially.

We are hopeful that the Government will restore community confidence in the Superannuation system.

In the meantime, these proposed changes might affect your confidence in investing, but be assured that Wise Owl Financial has the experience, credentials and exemplary past performance to provide the right advice and investment tools for you to succeed- built over two decades.  We work hand-in-hand with our clients, so you are in control of the process.

Long-term financial security is what our clients expect and we work hard and smart, to deliver a brighter future for you.

We would love to hear from you and assist you to grow your wealth.

(Please be aware that we cannot give advice without knowing your full circumstances)

 

For a no-obligation chat about your brighter financial future, please call on 1300 858 492 or drop us an email on info@wiseowlfinancial.com.au

 

From the team at Wise Owl Financial

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Wise Owl Financial Pty Ltd (ABN 88 152 935 067) is an Authorised Representative of Financial Services Partners Pty Ltd (ABN 15 089 512 587), AFSL 237590.  This general advice has been prepared without taking into account your particular financial needs circumstances or objectives, and is based on Wise Owl Solutions Pty Ltd understanding of the current economic environment.  While every effort has been made to ensure the accuracy of the information, it is not guaranteed.

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