The most recent Household, Income and Labour Dynamics Australia (HILDA) report included some interesting observations in regards to Superannuation that indicated it was becoming a larger part of our asset base.

The average Superannuation balances have increased substantially over the last decade or so, this occurred for those with below average balances, those in the top 10% of balances and those with balances in between. 

This year’s budget included changes to the Superannuation system. After some amendments were negotiated, the Bill was finally passed last week.  Many of us will be affected by the changes.

The contribution limits will be reduced for next financial year. The Concessional (pre-tax) Cap has been reduced to $25,000. Currently, this cap is $30,000 and for those over 55 the cap is $35,000. There are catch up provisions for those with super balances below $500,000.