While the government hasn’t ruled out making further super changes in the Federal Budget, and it is unlikely any additional changes will affect current financial year plans for investors, anyone planning changes to their own strategies should try to implement these prior to next month’s Budget to be on the safe side, says Andrew Yee, superannuation specialist at accountants and advisers HLB Mann Judd Sydney.
“In its announcement of super reforms, the Government made no comment about whether there would be further changes to superannuation in the Budget, and the reforms recently announced may not be the end of any changes.
“Nonetheless, investors should base their immediate and short-term super planning on the current laws. Even if any further super changes are included in the Budget, it is very unlikely they will start this financial year, or will be retrospective,” Mr Yee said.
He added that, just to be on the safe side in case there are Budget changes, people could action some of their end of year activities before the Budget is announced.
This could include things such as:
Mr Yee commented the Government is unlikely to tinker with this transition to retirement strategy, however it would be prudent to consider starting such a pension prior to the Budget to ensure the opportunity to do so is not lost.
“Those who find themselves no longer needing the income can always turn off the pension at a later date.
“In addition there is no maximum annual limit to account-based pensions, other than for those who are drawing a transition to retirement pension from their super fund, in which case the maximum annual limit is 10 percent.
“Taking an extra sum out of super in pension payments may be a worthwhile strategy for some this financial year.”
HLB Mann Judd Sydney is a firm of accountants and business and financial advisers, and part of the HLB Mann Judd Australasian Association.
For more information please contact:
Andrew Yee – Phone: 02 9020 4213
12 April 2013