Newsletter Articles

One Million Reasons to Invest in Superannuation...

It's not all that often that the Federal Government gives out presents, but here's something that any Australian who cares about their financial welfare should be aware of!

Guest writer, Karen McLeod of Genesys Wealth Advisers Ltd, has taken the time to provide our readers with some interesting news.

Hopefully, you have already heard about the proposed changes to superannuation laws.

A recent survey commissioned by Asgard Wealth Solutions reports that astonishingly, more than 50% of Australians are still unaware of the changes, including the once-in-a-lifetime opportunity to put $1 million into their funds tax-free before June 30. (Money Management, 5 March 2007.)

The advantage of post-tax contributions is that the maximum tax rate on superannuation fund income is 15%. This can translate into significant tax savings. In order to control the potential abuse of this generous measure, the Government will impose limits on the amount of post-tax contributions you can make after 1 July 2007.

However, during the transition period from 10 May 2006 to 30 June 2007, individuals can make post-tax contributions up to $1 million. If you have a partner, that means $2 million between you.

To make the most of this very generous 'window of opportunity', many financially savvypeople are now planning on borrowing money against existing assets with a view to investing as much as they can superannuation whilst this opportunity exists.

This is an important time to reassess your financial position and seek professional advice. There is only a couple of months before this 'window' will close!

Karen McLeod
Authorised Representative of Genesys Wealth Advisers Ltd
Telephone (07) 3221 771
kmcleod@globalfsg.com