End of super as we know it
By
Julia Newbould
Mon 25 Jun 2007
The deadline for the $1 million super contribution has now passed, and by many accounts a number of investors have missed out.
The deadline for the $1 million super contribution has now passed, and by many accounts a number of investors have missed out. But most advisers have been busy with clients taking advantage of federal Treasurer Peter Costello's simpler super arrangements announced in the May 2006 budget.
Since the announcement, all financial advisers I have spoken to say they have been stretched, working with clients to take advantage of the $1 million contribution. However, the opportunity ended on June 30. A lot of clients have been well prepared for more than six months, but others have kept their transfers until the last minute. But now the rush is over, and advisers can stop reminding clients of the opportunity, they will be ready to return to the more common biannual or annual reviews.
While advisers have had their work cut out in the past year, moving assets from outside super into super - from liquid investments, such as cash and fixed interest, to managed funds and equities and property - July may still be busy. It will be dedicated to beginning an income stream for many clients aged over 55. For those who have transferred large amounts of undeducted money into super, and are over 60, the income from income streams is tax free from July 1.
And anyone still working can start one and salary sacrifice their current income into super. The strategy is particularly beneficial for people who have put large amounts of super away. So, for everyone July looks like it will be relatively busy, but it is likely to be back to normal after that.
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