With the many legislative changes that one has to deal with when it comes to managing our finances, as a director of the Mutual Bank I am pleased we have the resources to help our Members with their financial needs.
2017 sees the commencement of a number of changes to legislation that will affect many people.
1 January 2017 saw the introduction to changes in the asset test rules for those who receive Centrelink pensions. Estimates indicate that some 200,000 people may have had their pension payments reduced and a further 100,000 may have lost their pension all together. This together with the low interest rate environment we are currently experiencing makes it particularly difficult for our Members who are retirees.
1 July 2017 will see the introduction of changes to the superannuation contribution rules. Currently a person aged 50 or over can contribute up to $35,000 per annum of pre-tax dollars into super. For the under 50s this amount is $30,000. From 1 July these amounts will both reduce to $25,000 per annum. There will also be a reduction in the amount of after tax contributions that a person can make to superannuation. If you are lucky enough to be able to afford these levels of contributions you will need to decide what to do with your excess and to make sure this money is working for you.
Your Mutual Bank is committed to helping our Members deal with these changes and our Financial Planning team is available to help you with these and other superannuation and investment matters. It is part of our commitment to be ‘Invested in you’.