I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC

Super Facts and Tips

The Pros and Cons of the Federal Government's Modifications to Super

Below are the vital changes to super and insights into just how they might impact you.

Bear in mind, these are only proposals so far, and they are not yet law. There may be more changes.

We'll keep you updated as the circumstance progresses. In the meantime, here's a review of the four essential adjustments and how they could affect you.

1. More tax obligation on Super revenues over $100,000 for pensions and annuities

What's changing?

This has been one of the most obvious adjustments, although also probably one of the most misunderstood.

Until now, incomes on account-based pensions or annuities have been entirely tax-free.

From 1 July 2014, the federal government had added tax to super incomes over $100,000 a year if the properties are used to fund retirement income streams, such as account-based pension plans.

Earnings over the limit will certainly be strained at 15 %, the same tax price already paid by super funds on profits from financial savings coming from individuals that haven't retired yet and also have their super in the development, or growth stage.

What does it mean for you?

This adjustment will impact you if:

You have several account-based pension plans or annuity settlements (which typically indicates that you have already retired or have begun a shift to retirement pension).

The super savings are used to fund such pensions or annuities earning above $100,000 a year.

If that is your situation, then you may end up paying tax on your super earnings over $100,000 at a rate of 15 %. If you are not boiling down on your super cost savings, this modification will not affect you.

2. Higher concessional contributions cap for the over the 60s and 50s

This change has obtained much less publicity, possibly since it escapes the news. Since 1 July 2013, super savers over 60 will be able to contribute more into their super while still benefiting from a 15 % concessional tax price of around $35,000 a year.

Those who are aged 50 - 60 will obtain the same increase a year later, on 1 July 2014.

Just what does it mean for you?

This is terrific news if you are an older super contributor that only began earning from compulsory super later on in your working life. It enables you to place a lot more right into super while still benefiting from a lower tax rate - utilizing salary sacrifice, for example.

It also assists in making a transition to retirement (TTR) approaches much more efficient, providing older investors another opportunity to improve their retirement savings.

More of this news can be read at www.australiansuperfinder.com.au

All information on this website is of a general nature only. We have not taken into account your financial situation, needs or objectives. You need to make up your own mind and ascertain yourself if it is right for you. We recommend you read the product disclosure statement(s) and the financial services guide before making any financial decision.

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