Proposed changes to Super Contributions

Amongst the many things the Govt constantly fiddles with is how much you are allowed to contribute to your super fund. In this years budget they're at it again, and are now proposing that:

       If you are 50 years or older,

• and have a total super account balance of $500,000 or greater, they will only allow you to contribute $25,000 in pre tax dollars.

• If your account balance is less then $500,000 then you will be able to add up to $50,000.

This is due to take effect from July 1, 2012 which leaves you with this year to consider your options and take action to keep your account balance under the $500,000 mark so that you can continue to take advantage of the higher contribution limit.

This measure is only a proposal and has not yet made it to legislation, and may not come to pass, but I would at least start looking at your options, because you may run out of time to get eveything in place if it does.

Kerrianne Hebinger

Financial Planning Essentials

e: fpe@finplans.com.au

w: www.finplans.com.au