Another round of not so super reform

After years of watching the Federal Government tinker with superannuation rules, most professionals in the industry have been pleading for the system to finally be left alone. By its very nature super is a long-term investment - it's hard to plan for the distant future when every year the government shifts the goalposts.

Unfortunately we're going to need to put a good bend on the ball again because in 2017/18 those posts are moving once more.

What should I be most worried about?

Without doubt the biggest concern for most medical professionals is the reduction in the cap on before-tax concessional contributions. This is a particular issue for professionals who are mid-career and still very much in wealth accumulation mode.

At the moment the cap is $30,000 if you're under 49 and $35,000 if you're over 49. From July 1, everyone's cap will be $25,000. Anyone who makes extra contributions through salary sacrificing for example, should speak to an adviser and take a look at how the changes will affect them.

This is a particularly urgent issue for anyone who hasn't used all of this year's cap as there's still time to put additional money in your account before the rules change.

What if I'm looking to retire soon?

Probably the biggest change for those near retirement is that there will now be a limit of $1.6 million that can be placed in income stream accounts.

If you have more than $1.6 million you can transfer the balance into an accumulation account or you might want to consider making a contribution to your spouse's account. There are a number of options available, but again it's important to speak to an expert who can provide advice on the best strategy for your individual circumstances.

Is there any good news?

Yes! If there's a small ray of light in the midst of all this gloom it's that from 1 July anyone can make a deductible super contribution - not just the self-employed. This will make it much easier for everyone to fully utilise concessional contribution allowances and get maximum tax benefits.

A good plan of attack

The unfortunate reality is that the changes to super that will begin next month are so wide-reaching that almost everyone will be affected in some way. The most important thing to do is take a holistic view of your investment strategy and what role super needs to play in it from 1 July.

It is absolutely still worth maximising your superannuation, but many people will also benefit from some strategic changes to their investment mix.

In short - get some professional advice and do it quickly.