What Do You Think of the Super Changes?

Scott,

I’ll keep this super-brief. What do you think of the latest super changes?

Gary

Hi Gary,

I think the Government has achieved the impossible: they’ve managed to turn people off the best tax dodge going around. Which is a shame because super is a much better long-term investment than buying an overpriced, negatively geared property.

For those readers who snooze when it comes to the mention of super, the Government has dumped their proposed $500,000 (backdated, lifetime) cap on after-tax contributions. Instead, starting on 1 July next year, you’ll now be able to put $100,000 in per year (rather than $180,000), after tax, on balances up to $1.6 million.

The best analogy I can give is that super is like marrying a hottie. Sure, with each passing year they get a little less attractive -- but it’s still a damn good deal compared to the alternatives.

Scott