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What do the 1 July 2017 Superannuation changes mean for healthcare professionals?

There are a range of major changes to Australian Superannuation rules being introduced from 1 July 2017. These can affect the contributions you can make to your Superannuation and limit the amount you can move into a pension.  Opportunities to take advantage still exist before the changes come into place, so seeking advice may help you.

Why is Superannuation Changing?

Contributing to Superannuation in Australia is mandatory and all employers are required to contribute a minimum of 9.5% into an employees chosen Superannuation fund for their retirement.

Superannuation is a very tax effective vehicle – the tax rate is a competitive 15%. This means any funds in a superannuation account are taxed at a maximum of 15% which can help to maximise retirement funds during the accumulation period.

The Australian Government has introduced a range of changes to Superannuation, designed to improve the sustainability, flexibility and integrity of Australia’s superannuation system. These changes will impact most individuals working in Australia and the application of these new rules can be complicated in some circumstances.

Why does Superannuation matter?

Superannuation is crucially important. It is an accumulation of funds that help to fund a longer retirement and can make a difference to the lifestyle you lead in retirement.

Remember – We are living much longer than ever before. You should keep this in mind when you’re thinking about how much superannuation you may require to live well.

When do these changes come into effect?

Most of the changes commence from 1 July 2017. It is important you familiarise yourself with the changes and how they may affect you.

What are the main changes that may affect you?

There are a multitude of changes to Superannuation from 1 July 2017. Some of the major changes that may affect you are:

  1. Contributions: The amount of pre-tax and post-tax contributions to Superannuation you can make has reduced.
  2. $1.6m pension cap: The amount of superannuation you can move into a pension will be limited. This is the amount you may be transferring into a pension account to derive a retirement income.
  3. Taxation on concessional contributions to superannuation for high-income earners has increased – from 15% to 30% for Australian’s earning above $250,

Additionally, there are several other changes that can be complicated to understand and can depend on income and age perimeters. If you’re unsure how they might affect you or you’d like to understand how you can make the most of the opportunity to before the rules change, consider speaking to a financial adviser.

What can happen if I don’t make changes now?

There are several changes which can affect the amounts you can contribute to your superannuation from 1 July 2017. Briefly this means:

  • The amount you will be able to contribute to superannuation will decrease
  • The tax you pay on contributions may increase in some circumstances

The changes can also affect Transition to Retirement (TTR) pensions and it also has implications for estate planning which may affect you. It’s important to consider your position before making any changes that could impact your retirement.

What action should I take?

Firstly, its strongly recommended that you familiarise yourself with the changes so you gain a greater understanding of what these changes may mean for your financial position.

Secondly, as these changes can be complicated and in some cases, confusing to understand, speak to a financial adviser to get advice tailored to your circumstances.

Need to find out more?

Are you a locum doctor, nurse or healthcare professional with questions about the changes to Superannuation and how they may impact you? Please complete the form found here, and one of our financial advisers will get in touch with you.


Anne Street Partners Financial Services Pty Ltd (ABN 25 107 671 563 AFSL 258853)
General Advice Disclaimer: The information contained on this website is general in nature only and does not constitute personal financial advice. It has been prepared without taking into account your personal objectives, financial situation and needs. Before acting on any information contained in this document you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

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