Budget moves superannuation goal posts
Self-managed superannuation funds (SMSFs) provide ‘the best super option', despite the controversy emanating from the budget, according to the SMSF Association.
SMSF Association managing director, Andrea Slattery, said that despite ‘some of the detrimental changes to superannuation in the budget' SMSFs remained to be one of the best choices for people when it comes to their retirement savings as they allow full control on how the savings are invested.
Although the budget has moved the superannuation goal posts, forcing the SMSF trustees to respond accordingly, it still offers a number of positives:
- Carry forward of unused concessional contribution caps;
- Members aged 65 to 74 can contribute without meeting the "work test";
- Ability to contribute on your spouse's behalf (who is aged under 75) without them having to pass the work test; and
- All members being able to make deductible personal contributions to their SMSF from 1 July 2016.
Slattery also stressed that it was critical under the new law for the trustees to ‘seek out specialist SMSF advice' and some of the positive changes to superannuation announced in the budget were exactly the same measures the SMSF Association has been advocating for years.
"It is very important to understand that superannuation is the best vehicle for Australians to save. It is also important not to forget that SMSFs offer significant flexibility and control that is even more relevant and useful in light of the budget changes," she said.
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