Preparing for the upcoming superannuation reforms: Practical SMSF investment strategies

Preparing for the upcoming superannuation reforms: Practical SMSF investment strategies with BetaShares Funds

1 July 2017 will be an important date for Australia’s superannuation system. Touted as the most significant changes to the system in a decade, a raft of new measures will take effect with the stated aim being to create a fairer, more flexible and more sustainable system for the future. Irrespective of the stated aim, there is no doubt that some of these changes may have adverse consequences for those investors who are not properly prepared.

Some of the more significant reforms from 1 July include:

• the maximum balance in pension phase to be capped at $1.6m, with balances over this limit to remain in accumulation phase (i.e. taxed at 15%);
• annual cap on concessional contributions to super to be lowered to $25,000 for all taxpayers, down from $30,000 for those under 50 years and $35,000 for those 50 years and over;
• taxation changes to transition to retirement income streams; and
• consequential transitional capital gains tax relief for eligible investors.

BetaShares has created a guide for advisers which illustrates a number of practical investment case studies using exchange traded investment funds, which may help to minimise negative impacts these reforms could have on your client’s SMSF portfolios. Being exchange traded, employing these strategies is as simple as buying any share on the ASX.

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The guide specifically illustrates potential strategies for investors who are seeking to reduce taxable income on balances above the new pension phase cap, by using investments which aim to generate high levels of franking credits. Additional strategies which have the aim of diversifying portfolio risk are also illustrated.

Investment strategies employing gearing are also examined as a means by which those investors who  are comfortable with leverage may be able to obtain increased market exposure without breaching the concessional contribution cap.

Click the link below to request your copy of this practical guide and learn about a number of strategies which may benefit your clients, and are easy to implement using ASX-traded funds. 

Request a copy of the guide now.

This information is for licensed financial advisers only.  BetaShares is not a tax adviser. This information should not be construed or relied on as tax advice and you should obtain professional, independent tax advice before recommending any course of action for investors.