The 2016 budget drives investment funds out of superannuation and into other sectors. Where will an extra $3B from high income earners go? Without tax concessions they need more performance from leverage assets. $3B at an 80LVR it is a $15B boost to the property investor sector. Will this cause further imbalance between home owners and investor lending?
“More than a million Australians who have a combined $600 billion in self-managed super funds are expected to be hardest hit from the budget’s sweeping changes to superannuation.
Self Managed Super Fund Association chief executive Andrea Slattery warned that the changes would send shock waves through the sector and “severely reduce the ability of people to save for retirement”.
Based on previous research, more than $3bn a year may now be diverted out of super to be invested elsewhere or be spent.”