2023 Federal Budget – How will your Superannuation be affected?
Our Financial Planning Team shares their thoughts on last night’s Federal Budget 2023 announcement.
Unlike previous budgets, superannuation was mostly allowed to ‘play on’ without significant changes announced.
Perhaps a major change, but one that may not immediately impact the vast majority of retirement savers, is the previously announced reduction in tax concessions, within superannuation, for individuals with a superannuation balance of more than $3m.
Whist this will impact very few Australians today, there is the potential over time for the impact to be quite far reaching. This is not only because Australians’ retirement balances grow over time, but more so because of the precedent that this reduction in tax concessions sets – it is a decision made that highlights the government’s willingness to call on the $3.4 TRILLION dollars sitting in Australian super funds to help ‘balance the books’.
UPCOMING SEMINAR: You can learn more about this superannuation change and how it might impact you in the future by attending our exclusive Highview Client Seminar on Wednesday 24th May. For further details and to express your interest in attending this upcoming seminar please email Aaron Straughair from our Highview team: aaron@highview.com.au
The remaining changes announced are outlined below, however they were not significant and largely administrative:
- For Business Owners: From 2026 you will be required to pay superannuation contributions on the same day as salary is paid rather than on a quarterly basis.
- For Self Managed Super Funds, changes to the tax calculation of ‘NALI’ (Non Arm’s Length Income): NALI generally comes about when a Trustee provides goods or a service to an SMSF (e.g. a Trustee who is a builder completing renovations on an SMSF property and does not charge commercial rates).
Given we were already made aware of the reduction in tax concessions to superannuation savings greater than $3m, there were no real surprises from a superannuation perspective announced last night. However as previously mentioned, this change could have far-reaching, intended or unintended consequences on many Australians in the future.
Get in touch with one of our Highview Financial Planning Team if you’d like further clarification – we’re here to help! Contact Us.
DISCLAIMER: This article has been written for general information purposes only and it does not constitute personal advice. This information has been prepared without considering any individual’s objectives, financial situation or needs. You should not act solely on the basis of material contained in this article. We recommend that formal advice is sought which considers all your individual objectives and needs.
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