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Budget highlights need for ‘professional advice’

The federal government’s 2015 Budget has only strengthened the case for consumers to seek financial advice, says an SMSF administrator.

In a statement issued yesterday, XpressSuper and SuperGuardian chief executive Olivia Long said professional financial advice has never been more important.

“The two key long-term goals of retirees of preserving capital and generating income should remain sacrosanct,” Ms Long said. “These new policies will change how you achieve these two goals and that’s where you need professional advice.”

While she welcomed the Budget’s small business provisions, the SMSF admin provider questioned flagged changes to the part pension.

“When you realise that an estimated 90,000 retirees will lose their part pension entirely, and nearly 250,000 will see their part pensions cut, then the enormity of the change for many SMSF trustees and members is evident,” she said.

“In essence, the assets-free threshold for homeowners rises to $250,000 for singles and $375,000 for couples from 2017, and the tapering rate rises from $150 to $300 per $1000 over the assets threshold.”