The Federal Budget is, as always, all over the news. Here’s a summary of the changes that directly and indirectly impact on you and your superannuation fund.
Assets Test – there are two changes that will take effect on 1 January 2017:
- The asset test thresholds have been increased. Non-homeowners asset test thresholds will all be increased to $200,000 above the homeowner asset test thresholds. The maximum levels of assets at which pensions cut out have also all been lowered (see the tables below).
- The taper rate for this test has been increased from $1.50 to $3.00 per $1,000 worth of assets. If your assets exceed your relevant threshold (see below), then your pension reduces by $3 for every $1,000 you have above that threshold. This reverses a concession introduced by the Howard Government in September 2007.
What’s counted under the assets test? Every asset you own (including the market value of your super pension, collectibles, personal use assets, motor vehicles) other than your family home is counted in this test.