There has been plenty of media attention given to the new super rules that were legislated last month. Interestingly, most of the rules will only affect around 4% of the population, so the vast majority of us will not see any changes.
For those people (un)lucky enough to be in the 4% impacted by these new rules, the good news is that we have until the end of the financial year to consider the impact it will have for you and the options available to best manage the changes. This is because the commencement date for the majority of the changes is 1 July 2017.
In addition to the legislation, the government issues regulations to support the legislation and help us understand how the new rules will work in practice. These are being progressively released, so at this stage there is not a lot we can confidently advise on. However, once all of the information has been released, we will be working through the new rules to determine the implications as well as consider the strategies available. We will be in touch with you as information comes to hand and decisions can be made with certainty.
For the moment, however, the best advice is to speak with your Advisor BEFORE making any decisions about your SMSF. While friends and family can be good sounding boards, every person’s situation is different and a strategy that might be suitable for one person is not necessarily right for the next. These are the most comprehensive changes to the superannuation legislation since 2007 and the repercussions of making an incorrect choice can be very costly.
As mentioned in our last newsletter and the letters sent to our SMSF clients, we will be reviewing each SMSF in the coming months. If you are going to be impacted by these changes we will be in touch to discuss your options. In the meantime, if you are concerned about your personal situation, please don’t hesitate to contact our office or your Financial Advisor.