Retirement
Investors shun super ahead of budget changes
With Treasurer Scott Morrison refusing to back down on proposed super changes, it is increasingly likely that the alterations will be implemented, making super less attractive and alternatives sought.
Investors shun super ahead of budget changes
With Treasurer Scott Morrison refusing to back down on proposed super changes, it is increasingly likely that the alterations will be implemented, making super less attractive and alternatives sought.
Centuria Capital general manager Neil Rogan says super changes risking Australians’ retirement plans may cause investors to seek out alternatives.
“I think the proposed changes to concessional and non-concessional caps have interrupted the plans of many Australians, and as part of that process they will be looking to identify tax-effective structures to invest their money,” Mr Rogan said.
“They may look for a company structure, a discretionary trust or if they’re looking for simplicity and flexibility, they may even look to an investment bond.”
Mr Rogan urged investors to assess their own situation when exploring options available to them.
“Investors who are currently 100 per cent in an SMSF may want to have all three to maximise various opportunities around tax effective investing,” he said.
Investment bonds, for example, have a similar taxation cap structure to superannuation while lacking initial contribution limits.
“With an investment bond, the fund’s tax paid is capped at 30 per cent for ongoing earnings... a bit like the super structure paid at 15 per cent,” Mr Rogan said.
“Investment bonds can be a good alternative for those who feel locked out by a superannuation concessional cap given there is no limit to the initial year contribution investors can make. In the second year, they can then invest up to 125 per cent of the first year’s contribution.”
If the proposed changes are implemented, the onus will be on Australians to have a backup plan.
“Trustees should be aware of these different options so that once specific changes come in, then they can execute on those options,” Mr Rogan said.
RELATED ARTICLES
Superannuation
Employment Hero raises concerns over superannuation bill's impact on small businesses
Employment Hero has raised significant concerns regarding the implementation of the proposed Supporting Choice in Superannuation and Other Measures Bill, which was recently recommended for passage by ...Read more
Superannuation
Rest calls for reform of superannuation rules for young workers
In a bold move to enhance the financial future of young Australians, superannuation fund Rest is advocating for the abolition of what it deems an "unfair and outdated" rule affecting under-18 workersRead more
Superannuation
Australians face readiness crisis as payday super reform looms
As the implementation date for one of Australia’s most significant superannuation reforms draws near, new research reveals a startling lack of awareness and preparedness among both businesses and ...Read more
Superannuation
Rest posts healthy returns following a positive end to 2025
Rest, one of Australia's largest profit-to-member superannuation funds, has reported impressive returns in its flagship MySuper Growth investment option for the year 2025. The fund is optimistic about ...Read more
Superannuation
Rest marks milestone with first private equity co-investment exit
In a significant development for Rest, one of Australia’s largest profit-to-member superannuation funds, the organisation has announced the successful completion of its first private equity ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Employment Hero raises concerns over superannuation bill's impact on small businesses
Employment Hero has raised significant concerns regarding the implementation of the proposed Supporting Choice in Superannuation and Other Measures Bill, which was recently recommended for passage by ...Read more
Superannuation
Rest calls for reform of superannuation rules for young workers
In a bold move to enhance the financial future of young Australians, superannuation fund Rest is advocating for the abolition of what it deems an "unfair and outdated" rule affecting under-18 workersRead more
Superannuation
Australians face readiness crisis as payday super reform looms
As the implementation date for one of Australia’s most significant superannuation reforms draws near, new research reveals a startling lack of awareness and preparedness among both businesses and ...Read more
Superannuation
Rest posts healthy returns following a positive end to 2025
Rest, one of Australia's largest profit-to-member superannuation funds, has reported impressive returns in its flagship MySuper Growth investment option for the year 2025. The fund is optimistic about ...Read more
Superannuation
Rest marks milestone with first private equity co-investment exit
In a significant development for Rest, one of Australia’s largest profit-to-member superannuation funds, the organisation has announced the successful completion of its first private equity ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
