Month: May 2016

John’s Viewpoint

This is my personal view on subjects that interest me.  It does not necessarily represent the firm’s view on those subjects – just mine!

25 May 2016.  Like many of us I do not agree with the government’s position on superannuation as represented by the recent Budget proposals.  In particular, I think the “lifetime cap” on non-concessional contributions of $500,000 is inconsistent with what many understood to be the prime objective of our superannuation – to encourage us to save to provide for our retirement and reduce the reliance on government pensions.  For those nearing retirement and who had expected to be able to add to their super once they no longer had as many family expenses, the limit of $500,000 may well prevent them from building a sufficient balance to support their retirement.  $500,000 will not last long for those fortunate enough to enjoy a life into their eighties and beyond.  The relatively minor savings achieved by the lifetime cap will likely be dwarfed by the increase in government pension that results.