From 1 July 2017, significant changes are coming to superannuation; with these changes often being complex to understand, Brian speaks to the Head of Financial Planning at MyState, Todd Kennedy.
Mr. Kennedy says that there are three main areas of change, including concessional contributions, high-income earners, and non-concessional payments, with the concessional contribution changes to affect most people.
“Concessional contributions...are things like salary sacrifice into superannuation,...payments that your employer is making for you, or it could be people that are self-employed that pay some money into super, and claim a tax deduction,"
"These annual amounts that you can pay in each year are being decreased,” he says.
Mr Kennedy did not appear to agree with rumours that the government would allow young people access to their superannuation to buy their first home.
“If you don’t give it the time it needs to grow, then people are going to have a real shortfall when it comes to providing for their retirement down the track.“
If you would like more information on these changes, MyState are providing a series of information sessions across the state, open to all Tasmanians. Find details here.