A new financial year brings a flood of financial changes and this financial year is no different, focussing on superannuation, here’s a summary of what to expect from today onwards:
Firstly, an increase in the Superannuation Guarantee with the minimum contribution from your employer now set at 9.25%, up from 9%.
Just cross your fingers your employer doesn’t hold back your pay rise to pay the increase in your super!
Next, the upper age limit on Superannuation Guarantee contributions has been removed.
If you’re over 70 and still in the workforce, your employer is now obligated to contribute to superannuation for you.
There will be a higher concessional contributions cap for those aged over 60 during 2013-14.
The concessional contributions cap will move from $25,000 to $35,000.
Excess super contributions will also be able to be withdrawn from July 1 2013, a better result than having them taxed at 46.5%.
Superannuation pension drawdown relief will end and the minimum pension drawdowns will revert back to pre-financial crisis levels.
For those 65-74 the minimum drawdown will be 5% up from 3.75% in 2012-13.
Aged 75-79 and the minimum drawdown is 6%; 80-84 is 7%; 85-89 is 9%; 90-94 is 11% and 95+ is 14%.
To financial markets, there’s been volatility over the past month with speculation, confirmation and then dissent on when the US Federal Reserve would taper its bond buying program.
Share and bond markets threw tantrums in response, but calm appeared to have returned last week, except in one market – gold, which fell to a 34 month low.
Improving economic news from the US has blunted predictions of doom, hyperinflation, a worthless US dollar and gold going to infinity.
An unfortunate result for gold spruikers who’d assured us buying gold was our only form of protection.
It was always a dangerous game to gamble on a rock that produced nothing and increased in value partially because people believed civilisation was ending!
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL/ACL 224543, www.mfg.com.au This information is general in nature and readers should seek professional advice specific to their circumstances. Looking for the top financial adviser in Australia? We think we’re it.
