James Wrigley

Hi, James.

Yeah, I'm going well.

Thank you for having me on.

What an interesting time with this budget, that's for sure.

Absolutely.

Without a doubt.

Yes, that's it.

And so whether by design, in the conversations I've been having with clients in the week since, whether it's by design or by accident, who knows, but it's kind of everything else has taken a step back in its relative attractiveness because super has broadly been left untouched.

Contribution limits stay the same, albeit they're kind of being indexed up from the 1st of July.

Access, tax rates, all of these kind of things, they all stay the same.

So there was no significant changes to the super system.

But everything else has kind of taken a step backwards.

Capital gains tax increasing, negative gearing changing, all the rest of it.

And so super then becomes that much more attractive.

It was already attractive, but it's even more attractive, I think, in the new world.

Yeah, so super pays a headline tax rate on income earned in the fund, 15%.

And depending on the type of super fund that you're using, your super fund might be individually taxed and you actually notice that tax bill being paid.

You might be in one of the big super fund providers or it's more of a unitized product and that tax is effectively kind of taken from your investment earnings, but nevertheless, it's being taken.

So super fund in the accumulation phase will pay a 15% rate of tax on earnings.

But for capital gains for assets that have been owned for more than a year, there's a one-third discount on that.