Forthcoming Changes to Superannuation

DJ Carmichael Wealth Management Breakfast - Thursday 9 March 2017

DJ Carmichael Pty Limited (DJC), recently hosted a Wealth Management Breakfast at the Parmelia Hilton, to update clients and guests about the forthcoming changes to superannuation.

These changes create a “layer of complexity” to the system that has not been in place since the 2007 changes removed “reasonable benefit limits”.

The legislation changes come into effect from 1 July 2017. The main messages change:

  • The rules for contributions and withdrawals in the superannuation system,
  • The way investment capital values can be held within the superannuation environment, per Australian resident. This also relates to how earnings in the superannuation system are treated. However, there are still significant advantages of using superannuation because of the lower superannuation system tax rate, compared to the earnings for those that are building wealth outside the superannuation system, or have retired on a higher marginal tax rate,
  • The previously unlimited amount that each Australian resident can have in the tax-free pension environment is being capped, regardless of whether Australian residents have multiple superannuation accounts to fund their retirement.

Some of these represent complex changes. As a result, we would encourage all DJ Carmichael clients, both our younger clients and those that are more established, to contact their DJC Investment Adviser / Financial Planner to see how the changes may affect your financial position, individual goals and objectives going forward.

Younger clients may need to think about starting to save into superannuation at a younger age, while there are important considerations for those that are in the pre and post retirement stages of wealth creation. It is very important that you touch base with DJC advisers to ensure you understand these changes and make amendments, if necessary, before 1 July 2017.

The breakfast was fully attended and all attendees enjoyed the session. The DJ Carmichael Wealth Management team looks forward to hosting the next information session for our clients and guests.