Super Reforms: The window of opportunity is closing

Super Reforms the window of opportunity is closing

Written by James Weir

James specialises in the theory and best practice of portfolio construction and management. His success within national and international investment banks led him to become a Co-Founder of Steward Wealth and he is a regular columnist for the Australian Financial Review.
April 27, 2017

Superannuation is by far Australia’s most tax effective investment strategies – helping many savvy investors create significant nest eggs free from the clutches of the tax department.

However, on 1st July, 2017 the federal government will be clamping down on the tax advantages with superannuation reforms.

One of the biggest changes being introduced is a ceiling of $1.6 million on the amount you can have in your super fund that is tax free when you retire – it doesn’t matter if it’s an industry fund, a retail fund or a Self Managed Super Fund. That $1.6 million tax-free amount is called your ‘pension account’, which is the portion of your super fund that literally pays you an income.

You can start drawing that pension once you’re over 55, in some situations, or when you’re over 65, whether or not you’ve actually retired.

Under the old system there was no limit to how much you could have in your tax free pension. But now, anything in your fund above that $1.6 million, will be held in an ‘accumulation account’ and you will have to pay 15% tax on any earnings you make. Whether that’s income from share dividends, rent from a property, or capital gains from selling an investment.

The good news is, there is still time to capitalize on the good old tax advantages, but you need to act now.

Miss the 30th June deadline and you’ll risk a significant impact on your retirement funds.

Download our Super Reforms ebook.

Find out the critical information about the government superannuation reforms, the impact it could have on your retirement funds, how to protect your investment and most importantly, how to capitalize on the opportunity before it’s gone.

Download Now >>
Book a Complimentary Consultation

Our founding partners will work with you one-on-one, to explain how the reforms will affect you personally and discuss strategies to take advantage of the closing window of opportunity. Places are limited so booking is essential.

This information is of a general nature only and nothing on this site should be taken as personal financial or investment advice, or a recommendation to buy or sell a particular product. You should also obtain a copy of and consider the Product Disclosure Statement before making any decision on a financial product. You should seek advice from Steward Wealth who can consider if the general advice is right for you.

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