Your Superannuation – 8 matters to consider post budget
- Salary sacrifice arrangements – it might be better to claim the deduction personally.
- Those with higher account balances –consider splitting super with your spouse if your account balance exceeds $1.6 Million.
- For those aged between 65 and under 75 – revisit your plans to make super contributions. The requirement to meet ‘work test’ has been removed, can you be making contributions reducing personal income tax, while moving your retirement savings to a more tax effective environment.
- High balance pension funds of more than 1.6 Million – revisit and make adjustments if necessary. You may need to make a withdrawal or transfer a portion back to an accumulation account.
- Review and reassess your Transition to Retirement Pension and for those who are about to use one, it may be worth reconsidering.
- Review super contribution plans if you are earning over $250,000.
- Plan for concessional contribution catch ups if eligible.
- Review super balances above $1.6 million before starting a pension.
Finally it is important to remember the budget announcements are only proposals at this stage, and must first be legislated which will largely depend on the upcoming election.
If you wish to discuss your situation please don’t hesitate to contact our office.
Mark Carey | Accountant | The Money Edge | Bundaberg