Jo Dawson - September 2017
Legislative and economic change continues
The Australian economy is experiencing a time of significant change which impacts us all.
Record housing prices are negatively affecting affordability and there is uncertainty as to what the Reserve Bank will do regarding future changes to interest rates.
On top of all that, 1 July 2017 saw the introduction of significant changes to the superannuation system.
The maximum amount of tax deductible contributions that can be made on behalf of a person was reduced to $25,000 per annum. This means that if you have been adopting a salary sacrifice strategy you need to make sure you are not going to exceed the new caps.
For those with transition to retirement allocated pensions, they have become less tax efficient. Therefore, a review should be undertaken of whether or not you should continue with these pensions.
All of these things have the potential to alter your cash flow and therefore the amount you have to pay off a mortgage or save and invest through other means.
If you fit one of the above categories, some consideration should be given as to changes that may need to be made. At the Mutual Bank we have our team of Financial Planners that can assist you in the decisions you may need to make regarding these matters as you should always make sure your money is working as hard as it can.