Despite the government's recent announcements outlining its plans for superannuation, HLB Mann Judd has claimed there may yet be further changes in the May Budget.
While conceding that further shifts that would affect current year financial plans are "unlikely", HLB Mann Judd Sydney superannuation specialist Andrew Yee warned investors not to rule out further surprises.
"In its announcement of super reforms, the government made no comment about whether there would be further changes to superannuation in the Budget, and the reforms recently announced may not be the end of any changes," Mr Yee said.
He recommended investors base all immediate and short-term plans around the current laws, given that further changes in the Budget would almost certainly not be retrospective.
Just to be on the safe side, however, investors should take certain precautions, such as ensuring they maximise concessional and non-concessional contributions. Investors should also aim to ensure all contributions are received by super funds as early as possible, Mr Yee said.
Investors should take care to review all contributions (including those made by an employer on the investor's behalf) to ensure caps are not breached, and to track any planned transfer of assets into or out of self-managed super funds.
Those who have reached the preservation stage may want to consider a plan for the transition to retirement, starting a pension strategy prior to the Budget to ensure the opportunity to do so is not lost.
"Those who find themselves no longer needing the income can always turn off the pension at a later date," Mr Yee said.
"In addition, there is no maximum annual limit to account-based pensions, other than for those who are drawing a transition to retirement pension from their super fund, in which case the maximum annual limit is 10 per cent.
"Taking an extra sum out of super in pension payments may be a worthwhile strategy for some this financial year," he said.
