The international trend towards later retirement has arrived in Australia. The change in tax concessions has also made it harder to provide for it through super.

If you’d been planning to turbocharge your super once you’ve paid off the mortgage and the kids are off your hands, think again. Aside from stretching the retirement age to 67, the Budget has chopped the Concessional Contribution cap in half, from $100,000 to $50,000 effective July 2009, and by July 2012 it will reduce further to $25,000.

What this means is that the opportunity to top-up your super in later years is likely to disappear, and a very tax effective solution for retirement provision will disappear with it.

It also means that there is an urgent need for investors to find a tax effective alternative, and investment property is the obvious choice.

Experts predict a surge into investment property now the super rules have changed, so you should consider getting in early before demand really takes off.
Please call us if you would like to discuss how investment property could lead to a tax effective solution to your retirement needs now that the super gap has been plugged. By the way, this strategy can help you to retire earlier than 67!
Contact (02) 9687 3601 or email us at info@mccarthygroup.com.au