Super reforms tipped to shift more wealth into property
The uncertainty caused by policy changes could see a reduction in the amount of money contributed to super and an increase in the amount invested into property in the long-term, according to one research house.
BIS Shrapnel associate director Kim Hawtrey said that while a lot of Australians would be hesitant to move their wealth into property in the short-term given the “property cycle is now near its peak”, over the longer-term the changes to super could mean more wealth becomes invested in the property sector.
“If you subtract the timing of the cycle then in principal if the tax advantages of property are relative to super, then you should see money move over time,” said Mr Hawtrey.
Mr Hawtrey said he believes that discretionary superannuation over and above the mandatory is on the decline.
“There is a lot more uncertainty because of policy changes to the super system, so people are becoming a bit more hesitant about putting money into super because politicians are tampering with it,” he said.
“That might make the money that would’ve been going to super go to property more than anything else.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.