DEXX&R said the government’s plan to lower the superannuation concessional contributions cap to will have an impact on future super guarantee contributions.
“The 2016 budget changes result in a significant reduction in the amount that members can contribute in addition to employer SG contributions and stay within the maximum concessional contribution limit,” the company said in a statement.
“For those earning more than twice the current average salary of $80,000, the opportunity to contribute meaningful additional concessionally taxed contributions over the next ten years is significantly reduced.”
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As a result, advisers with high income clients will increasingly opt for strategies outside of super. It will also become difficult to sell advice to super fund members, DEXX&R said.
“With limited scope for a meaningful uplift in voluntary member contributions it will become increasingly difficult to justify the current cost of full financial advice to super fund members,” it said.
“Low cost financial advice solutions such as robo-advice will play a larger role and become the most cost effective advice delivery mechanism for middle and low income members.”
