RSM Australia

End of financial year - four months to go

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The season has changed to autumn and it is four short months to the end of the financial year. The press is constantly talking about tax reform, what is in, what is out, what is being considered.

The reform of the taxation of superannuation is constantly speculated on in the current media coverage. Some are agitating for less to be able to be contributed to superannuation to reduce the taxation cost to the system, while others are seeking the ability for more to go into the superannuation system to help fund retirements into the future and reduce the strain on the social security system into the future.

At the moment there is a lot of media hype, however the key fact to remember is we know what the rules are now and have the ability to act in accordance with them. Governments have historically stayed away from retrospective change which has allowed for any arrangements that are currently in place to continue.

Given we know what the rules are now, consideration should be given to looking at year end matters while we know what can be done. Subject to your circumstances consideration should be given to getting your superannuation and tax planning in order.

The media speculation in relation to superannuation changes may well be nothing more than speculation that is testing the will of the electorate. When considering your plans it is worth considering acting now in consultation with your advisers before any changes are made.

In the next edition of super pathways we will look at a more comprehensively at what to consider before 30 June.