Thursday, 27 October 2016

Plan now to make the most of upcoming super changes

The 2016/17 Federal Budget was the start of announcements to introduce sweeping changes to superannuation. The taxation arrangements are changing significantly and while the ability to build superannuation balances will be greatly hindered for some people, new opportunities are also available for others grow theirs. 

“No strategy previously created for clients can be assumed to be appropriate or complying from 1 July 2017 – revisiting those strategies and adapting them to new laws will be imperative for advisers and their clients,” says Liz Westover, Director with PwC Private Clients.

With most of these reforms taking effect from 1 July, 2017, the 2016/17 financial year provides one of the last opportunities for many to contribute to their super balances under existing laws, but importantly to get their superannuation affairs in order to be ready for the new era of saving in super.

There are opportunities for Australians to make provision for the new super laws to assist in maximising superannuation savings but it is vital to understand what the changes will be, how transitional arrangements impact clients and what opportunities are available in this current financial year.

Liz believes that “Planning is required now to make the most of opportunities available. Many options will not be available after 1 July, 2017 and preparation will be key to ensuring the transitional arrangements are utilised correctly and appropriately for clients. With the introduction of other new measures and increased thresholds, no client will be left unaffected by the new changes and for many their ability to grow their super will be enhanced.

Education for advisers is a must during this period. “All advisers need to consider how their clients will be impacted and how they might avail themselves of opportunities this year and in the future,” she warned. 

Liz and others will be discussing these changes at the ‘Superannuation – What You Need To Know’ half-day seminar on 29 November at Citywest Function Centre, West Perth. Clients will need to be guided through these changes, so for accountants and advisers, it’s game on. To learn more on how to assist your clients, receive the latest guidance from local and interstate experts, as well as the ATO at the event. Find out more.