Did you know that your superannuation changed on Monday?
Monday, being the commencement of another financial year (not sure where the last one went) saw a raft of superannuation changes that will affect us all!
No matter whether we are employers, employees, subcontractors, or self-funded retires already living off our superannuation monies; we are all somehow affected by these changes in superannuation.
The main change that many of you out there will realise is that your boss is going to put an extra quarter of a per cent into your superannuation. This will continue to rise over the next few years until SGC reaches 12%, rather than the previous 9%. This change is great for all employees as it should allow for more cash later on in life.
A word of caution however, if you have negotiated your salary inclusive of super it may mean you get a little less in your pocket and more into super – this should be clarified between you and your employer.
If that sounds a little harsh, the news is even worse for people earning the big bucks!
Those earning more than $300,000 per annum will have their super contributions tax doubled to 30 per cent.
At the lower end, retired couples who earn up to around $70,000 will now be able to claim a part pension.
The Government has also scrapped the super age limit, and younger workers will be affected too.
But please, what matters most is how your super is doing?
Funds are on track to deliver better returns this year, especially when compared with the last few years, but this doesn’t mean you can become complacent!
So when your statement gets posted out to you in over the next month or so, be sure to check and see how your superannuation has performed.
According to research done, 75 per cent of Australians aged 25 to 49 believe people should start saving for retirement before the age of 30, yet more than half have never made extra contributions to superannuation – WHY?
Superannuation ranks low on their list of financial priorities; well behind mortgages, credit cards, cost of living and even holidays.
Star of the television show The Apprentice and Financial Guru, Mr. Mark Bouris recently said “Ignoring super is like ignoring 10 per cent of your weekly wage, which most people would never do”.
Is this you? Are you ignoring 9.25% of your income?
Do you need help with your superannuation today? Feel free to contact Peter Locandro at ZJL Partners or visit our website at www.zjl.com.au