So the Tax System needs an overhaul? What else is new!!!?

Peter Cramer

A tax paper has been released by Treasurer Joe Hockey with a view to starting debate about our tax system and what it should look like in the future.

What does this mean? Well – it will ensure about 10million words are written in the press and as many spoken on television by many people who don’t have much idea of what they are saying!

It will become ‘flavour of the month’ (make that 18 months) and there will be the usual posturing by politicians, the immediate negating of whatever one party says against the other and many interest groups putting forward their views so as to protect their interests!

So – what do you need to do about it?

One thing is for sure – there will be change in the tax system. The need for change is upon us and I believe the three sides of politics recognise that.

Superannuation is one area that is certain to change – however just how it changes will be one of the many topics taking up those 10 million words!

Some things to think about:

  • The tax discussion will go on for 12 months or more
  • The major parties will go to the next Election with their policies and will be arguing they have the mandate for change if they win
  • After that, policies will be formulated and put to parliament for a vote – then to the Upper House for ‘passing’.
  • Some months after that, change will happen
  • It is very unlikely change will be retrospective – almost guaranteed it won’t
  • Those who put their plans into place now have solid reason to feel very safe
  • There are very sound reasons why Super is the retirement vehicle of choice
  • You may only have 12 months to put in place strategies to save you $000’s now and many $000’s in the future!

Yes things will change – but in my opinion, any changes will only reduce the amazing benefits we have now, rather than ever making you wish you hadn’t undertaken them!

My recommendation is to get your skates on and take action to put strategies in place before changes are made. There are many proactive opportunities waiting to be taken advantage of – now is the time.

If the Politicians are true to their word (is that really a possibility?) concerning tax change and restructuring, then you may well look back in years to come and bemoan the fact you failed to act when you could have.

Contact us to discuss what opportunities may be possible for you and your family.