Why you shouldn't panic over super changes

Many people are confused and worried about how the budget's proposed super changes might affect their savings for retirement. Here, we take a look at what those changes could mean for you. But the important thing to remember is, this is not time to panic.

Things won't change right away

The new measures will need to pass through both houses of parliament to become legislation, so most changes aren't likely to start until July 1, 2017.

Add up your concessional contributions and consolidate

Include those contributions to your super fund made by your employer, salary sacrifice or personal tax-deductible contributions (if you're self-employed). It is easier to manage one account and it reduces fees.

Evaluate your long-term plan

If you're in a high-income bracket or have a large super balance, you could be taxed at a higher rate. Now is a good time to speak to your fund or a financial adviser.

Check your life insurance cover

With tax refunds relating to death benefits potentially ending from July 1, 2017, consider increasing your life insurance.

Add up your non-concessional contributions

If you've made any large after-tax super contributions, ask the tax office to calculate your contributions to see if you're under the proposed $500,000 lifetime cap.

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