In the lead up to the Federal Budget on 10th May, there have been various rumours, speculations, leaks and ‘wish lists’ in regards to superannuation legislation and taxation. Before May, you should utilise all the current benefits that superannuation has to offer as the rules could change.

There are a number of strategies you could consider to take advantage of under the current rules, while they last.

  • Maximise your contributions by salary sacrificing (concessional) and/or making personal (non-concessional) contributions. A number of conditions apply so speak to your adviser at WLM to ensure you have the most appropriate contribution strategy.
  • Consider commencing a pension if you are 56 or older.  If you are still working, ask us about a Transition To Retirement (TTR) pension.   
  • Review your current pension arrangements with your adviser.
  • Consider splitting your contributions with your spouse. Currently you are able to split up to 85% of your contributions to your spouse which may help to bring your balance below a proposed targeted tax threshold
  • Check your eligibility to make a spousal contribution of up to $3,000 for your spouse and receive an 18% rebate (up to $540)
  • Look for small lost super accounts – the threshold below which small lost super accounts will be required to be transferred to the ATO has increased to $4,000 (from December 2015).
  • Combine small super funds to save on administrative fees and make administration easier.
  • Consider if a Self-Managed Super Fund is the best vehicle for you and your partner/spouse to combine you super amounts.
  • Review your investment strategy and cash flow requirements in both super and pension accounts. This may include any timing of assets/investment sales within your fund.

As with any review and possible changes to a very important part of your wealth planning, seek professional advice. WLM have specialist advisers to assist you with your financial future.