Aussie personal super contributions set record in June quarter
The new superannuation rules have resulted in Australians placing a record $42 billion into their retirement funds during the last June quarter which was equivalent to almost $500 million a day during the three months.
According to financial planner KRA Financial group director, Mark O’Leary, thousands of Australians sold almost every other asset to place funds into their super accounts.
“A lot of the money came from people selling property, investment property, and even their own homes. They were selling assets such as shares and managed funds, almost anything so they could put it into their super,” Mr O’Leary told Melbourne’s Herald Sun newspaper.
“There were reports of people liquidating almost any assets they could just to get it into the tax-free environment for the rest of their lives. Really, it was a once-in-a-lifetime opportunity never to be repeated. There was money going all over the place in the last three months – they were certainly extraordinary times,” Mr O’Leary said.
Although in the past it was employer contributions which made up the bulk of super contributions, the June quarter had personal contributions topping the list. Personal contributions were $22.4 billion, more than triple the amount of any previous quarter. Employer contributions amounted to $19 billion.
The huge personal surge was caused by the super rules changes which allowed people to make personal contributions of up to $1 million before June 30. Since that date after-tax contributions for most individuals have been limited to $150,000 a year.
