Speaking to SMSF Adviser, Hewison Private Wealth client adviser Nathan Lear said while he believes taxation changes to superannuation are “inevitable”, it is “dangerous [for superannuants] to make significant changes based on possible changes to legislation”.
Mr Lear said some of the announced changes to the age pension, as well as commentary on superannuation, have created uncertainty.
“It’s definitely getting people thinking: in the past they would have just put money into super without putting any thought into it, but with the noise it’s definitely bringing it front of mind as a consideration,” he said.
Mr Lear said it was better to work with the current set of rules, however, and with the information available at present.
“Particularly with [the recent] changes around aged care and the age pension test, it is dangerous to start withdrawing money out of super, for example, and capitalising it in the family home to generate a higher pension.”
Mr Lear said if the government were to lower or change the threshold again, it could leave the retiree with the exact same problem.
Wealthier SMSF trustees could potentially look into other structures as alternatives to super, such as family trusts, he said.
“Our advice to clients is that you’re always better to build as much of your own wealth as possible rather than relying on the age pension,” Mr Lear said.