Treasurer Wayne Swan’s fourth federal budget, released on 10 May, was a relatively low-key affair as far as superannuation went.
Broadly, the budget’s changes to super fall into three categories:
1. A minor tinkering with the existing super rules, including a relaxation of the stringent financial penalties for exceeding before-tax contribution limits.
2. The Government has used this budget to reaffirm its commitment to its ‘MySuper’ reforms.
3. A tightening of the rules around self-managed super funds.
At the time of writing, investment markets around the world had moved significantly higher, as fears of the economic effects of Japan’s nuclear crisis and Middle Eastern political upheaval subsided. By contrast, the Australian sharemarket has been relatively flat. But overall, the outlook for superannuation investors remains cautiously optimistic.
With this in mind, we’ve devoted this edition of our newsletter to showing how it can really pay to spend a bit of time now on your super, whatever your age.
We know that many of you in Queensland and Victoria have been personally affected by the flooding and cyclone damage.
In our recent Suncorp Life survey, we found that the equivalent of 900,000 Queenslanders are more worried about their financial security now than they were before the floods and Cyclone Yasi.
I urge anyone who is feeling overwhelmed by their financial situation, or who isn’t sure which super or life insurance options are best for them, to consult a financial planner, who can develop a strategy to suit your personal needs.
As always, thank you for letting Suncorp look after your super.
Vicki Doyle
Executive General Manager
Super & Investments
