The new superannuation changes came into effect on 1 July 2017 and for members of Defined Benefit Superannuation schemes like CSS and PSS these changes are significant.

One area that has some complexity is the area of salary sacrifice. It is an area that many members of CSS and PSS ignore to their detriment but for those who are serious about improving their financial situation in retirement it is very important to thoroughly understand the new rules.

The cap for concessional contributions was reduced to $25,000 on 1 July 2017. At the same time a notional amount was included in the new concessional contribution cap for members of Defined Benefit Superannuation schemes like CSS and PSS.  Additionally, for members of the Defined Benefit Superannuation schemes like CSS and PSS, there is also Productivity component that needs to be factored into the concessional contribution cap calculation.

A final and important change to concessional contributions relates to the removal of a restriction that previously prohibited employees from making deductible superannuation contributions. This change in Legislation has created a new and simpler way for employees to tax effectively contribute to superannuation to boost their retirement savings through the making of deductible superannuation contributions.

At The Financial Advice Shop we enjoy assisting CSS and PSS members to ensure they are on track to maximise and optimise their total superannuation entitlements and we do this through a cost effective Financial Advice Health Check. As part of a Financial Advice Health Check we will discuss the importance of you optimising your superannuation contributions to improve your final retirement position in a range of scenarios.

If you take the time to visit The Financial Advice Shop home page it will not take you long to realise we are a superannuation expert in many areas. You will also be able to access links to our dedicated CSS and PSS web pages that offer a range of tips and traps that CSS members and PSS members might like to consider. If you have questions, we have the answers.

If you, or someone you know requires further assistance, please feel free to contact us and we will see how we can help.

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