1 00:00:00,240 --> 00:00:04,230 Michael : Sean, take care of tomorrow with award- winning value at UniSuper. 2 00:00:04,440 --> 00:00:08,910 Sean: That's right, Michael. UniSuper's awarded value, lower fees, and great long- 3 00:00:08,910 --> 00:00:12,510 Sean: term performance are backed by 40 years of investment expertise. 4 00:00:12,630 --> 00:00:17,970 Michael : All Australians can join UniSuper today at unisuper. com. au. 5 00:00:18,150 --> 00:00:20,430 Michael : Please remember that past performance is not an indicator of 6 00:00:20,430 --> 00:00:25,529 Michael : future performance. Consider UniSuper's PDS and TMD on its website and your circumstances 7 00:00:25,530 --> 00:00:26,669 Michael : before making decisions. 8 00:00:33,150 --> 00:00:35,879 Sean: Welcome to the FEAR & Greed Business Interview. I'm Sean Aylmer. 9 00:00:35,969 --> 00:00:38,640 Sean: Anyone who listens to this podcast would know I'm a 10 00:00:38,640 --> 00:00:42,000 Sean: big supporter of getting financial advice, but I also know 11 00:00:42,000 --> 00:00:44,010 Sean: that for a lot of people, the cost of advice 12 00:00:44,010 --> 00:00:46,620 Sean: can make it feel like a luxury when really it 13 00:00:46,620 --> 00:00:49,529 Sean: should be an essential. And it's particularly important when it 14 00:00:49,530 --> 00:00:53,608 Sean: comes to your superannuation because after your house, your super 15 00:00:53,609 --> 00:00:56,340 Sean: is likely to be the biggest asset you'll ever own. 16 00:00:56,670 --> 00:00:58,440 Sean: This time of year is when a lot of people 17 00:00:58,440 --> 00:01:01,560 Sean: start looking at their finances simply because it's tax time, 18 00:01:01,830 --> 00:01:04,979 Sean: but getting financial advice and taking control of your financial 19 00:01:04,980 --> 00:01:09,209 Sean: future goes beyond just talking to your accountant about tax. 20 00:01:09,450 --> 00:01:12,690 Sean: Andrew Gregory is the head of financial advice and education 21 00:01:12,690 --> 00:01:16,020 Sean: at UniSuper, a great supporter of this podcast. Andrew, welcome 22 00:01:16,020 --> 00:01:16,740 Sean: to FEAR & GREED. 23 00:01:17,160 --> 00:01:18,449 Andrew: Thank you, Sean. Great to be with you. 24 00:01:19,319 --> 00:01:21,449 Sean: I know how important it is to speak to a 25 00:01:21,450 --> 00:01:26,340 Sean: professional financial advisor, but to you, what's the value of advice? 26 00:01:27,450 --> 00:01:29,369 Andrew: Sean, it's a great question because I get asked this 27 00:01:29,369 --> 00:01:31,920 Andrew: quite a lot. In fact, I was talking with my 28 00:01:31,920 --> 00:01:34,890 Andrew: brother last night, funnily enough, and he was telling me 29 00:01:34,890 --> 00:01:37,140 Andrew: about one of his friends who has made a lot 30 00:01:37,140 --> 00:01:39,690 Andrew: of money in crypto and should he be investing in 31 00:01:39,690 --> 00:01:42,900 Andrew: that? And it made me sit back and think, " Well, 32 00:01:43,020 --> 00:01:45,389 Andrew: if you got good advice, I wonder whether you'd be 33 00:01:45,389 --> 00:01:47,669 Andrew: asking me that question?" And when I think about the 34 00:01:47,670 --> 00:01:50,340 Andrew: value of advice, I think it's not a singular thing, 35 00:01:50,340 --> 00:01:52,320 Andrew: it's not something as simple to say it's going to 36 00:01:52,320 --> 00:01:55,200 Andrew: give you this, but there's a series of steps I 37 00:01:55,200 --> 00:01:59,129 Andrew: think you go through that ultimately lead to confidence. And 38 00:01:59,490 --> 00:02:02,429 Andrew: there's a colleague of ours, Andrew Inwood, who is the 39 00:02:02,429 --> 00:02:04,440 Andrew: leader of Core Data. He has this framework that I 40 00:02:04,440 --> 00:02:08,160 Andrew: love Sean, and it's a framework that I think steps 41 00:02:08,160 --> 00:02:10,680 Andrew: through the components of what the value of advice is. 42 00:02:10,680 --> 00:02:12,180 Andrew: So if I might, I might just step you through 43 00:02:12,180 --> 00:02:12,450 Andrew: those because... 44 00:02:12,510 --> 00:02:13,830 Sean: Yeah, yeah. Take me through it. 45 00:02:13,980 --> 00:02:18,419 Andrew: The first step is bringing chaos to order. The second 46 00:02:18,419 --> 00:02:22,799 Andrew: step is order to better structure. The third step is 47 00:02:23,129 --> 00:02:29,340 Andrew: structure to confidence. The fourth, confidence to habit. The fifth, 48 00:02:29,490 --> 00:02:34,619 Andrew: habit to reward. And the sixth, reward to wealth. And 49 00:02:34,620 --> 00:02:37,889 Andrew: you think about each of those, and I think all 50 00:02:37,889 --> 00:02:41,250 Andrew: of us would start out by conceding that our financial 51 00:02:41,250 --> 00:02:45,780 Andrew: situations are never in order. There's something chaotic about what 52 00:02:45,780 --> 00:02:47,550 Andrew: we have in our life. And I love that first 53 00:02:47,550 --> 00:02:51,300 Andrew: step of bringing chaos to order. And I think there's 54 00:02:51,840 --> 00:02:54,480 Andrew: a stepping point that all of us would go through 55 00:02:54,480 --> 00:02:57,030 Andrew: where we look at our financial affairs and we would 56 00:02:57,030 --> 00:02:59,579 Andrew: feel so much better if things were organized. And I 57 00:02:59,579 --> 00:03:01,950 Andrew: feel like advice has a really important role to play 58 00:03:01,950 --> 00:03:04,500 Andrew: there. But then that order has got to get into 59 00:03:04,500 --> 00:03:07,169 Andrew: some sort of structure. And so it could be about 60 00:03:07,169 --> 00:03:10,229 Andrew: which ownership structures you've got your assets and your wealth and 61 00:03:10,320 --> 00:03:14,400 Andrew: your protection set up in, are they tax efficient, and 62 00:03:14,400 --> 00:03:17,758 Andrew: so on and so forth. And that structure brings about 63 00:03:17,820 --> 00:03:19,919 Andrew: confidence because all of a sudden you've got things in 64 00:03:19,919 --> 00:03:22,500 Andrew: order, everything has a place, and everything is in its 65 00:03:22,500 --> 00:03:25,770 Andrew: place. And from there, that confidence moves into a bit 66 00:03:25,770 --> 00:03:27,870 Andrew: of a habit because you start to see a bit 67 00:03:27,870 --> 00:03:30,330 Andrew: of momentum rolling through and that habit starts to bring 68 00:03:30,330 --> 00:03:32,429 Andrew: about a reward. And maybe that might be a tax 69 00:03:32,429 --> 00:03:34,979 Andrew: deduction or it could be a return or a dividend, 70 00:03:34,980 --> 00:03:36,870 Andrew: or it could be even a claim that you might make 71 00:03:36,870 --> 00:03:39,840 Andrew: on an insurance policy. But then finally you start to 72 00:03:39,840 --> 00:03:43,410 Andrew: see wealth start to generate. And the idea of this 73 00:03:43,410 --> 00:03:45,570 Andrew: framework is it takes almost three years to get there. 74 00:03:46,110 --> 00:03:47,699 Andrew: And so there's something where you've got to hold the 75 00:03:47,700 --> 00:03:49,559 Andrew: line around those six steps. 76 00:03:50,219 --> 00:03:52,650 Sean: I suppose what I'd like about that is that it 77 00:03:52,650 --> 00:03:57,510 Sean: demonstrates that success is incremental. It's not a silver bullet. 78 00:03:57,510 --> 00:03:59,910 Sean: You don't just go and see a financial advisor once 79 00:04:00,210 --> 00:04:02,910 Sean: and you're up and running and it's all over. It's 80 00:04:02,910 --> 00:04:06,150 Sean: actually the idea that it takes work to put your 81 00:04:06,150 --> 00:04:09,899 Sean: affairs in order, to listen to your financial advisor, to 82 00:04:09,900 --> 00:04:15,450 Sean: over time potentially reorganize how you structure your finances. There's 83 00:04:15,450 --> 00:04:16,830 Sean: kind of a process to it. 84 00:04:17,310 --> 00:04:20,700 Andrew: Totally. Totally, Sean. It's like that process equals outcomes argument. 85 00:04:20,790 --> 00:04:23,879 Andrew: And a lot of people talk to that, but I 86 00:04:23,880 --> 00:04:26,130 Andrew: think the thing that we always miss is we're at 87 00:04:26,130 --> 00:04:28,919 Andrew: a barbecue where we hear someone who's made incredible wealth 88 00:04:28,920 --> 00:04:32,130 Andrew: in property or incredible wealth in shares, but perhaps there's 89 00:04:32,130 --> 00:04:34,380 Andrew: a process that sits behind that. And we often want 90 00:04:34,380 --> 00:04:36,750 Andrew: to jump from step one to step six. But I 91 00:04:36,750 --> 00:04:38,909 Andrew: guess the value of advice, back to your first question, 92 00:04:38,910 --> 00:04:41,639 Andrew: is that we've got a clear structure in which we 93 00:04:41,639 --> 00:04:44,068 Andrew: step you through. You've got professionals that lead you through 94 00:04:44,070 --> 00:04:47,099 Andrew: that. And we can also be your honest friend in 95 00:04:47,100 --> 00:04:49,380 Andrew: that sense and ensure that you do get to that 96 00:04:49,380 --> 00:04:51,960 Andrew: sixth step, which is ultimately building wealth for your family. 97 00:04:52,800 --> 00:04:54,660 Sean: Okay, so I mentioned that one of the main barriers 98 00:04:54,660 --> 00:04:58,410 Sean: to the broader uptake of financial advice is cost. It 99 00:04:58,410 --> 00:05:00,690 Sean: has been an issue for many years in this country. 100 00:05:01,200 --> 00:05:03,988 Sean: What a lot of people probably don't realize is that 101 00:05:04,469 --> 00:05:07,290 Sean: there's not just one type of advice, there's a range 102 00:05:07,350 --> 00:05:12,240 Sean: of advice that's available from retail advisors, but particularly within 103 00:05:12,240 --> 00:05:13,560 Sean: your super fund as well. 104 00:05:13,950 --> 00:05:17,639 Andrew: Exactly right. And I do worry that the misconception is 105 00:05:17,639 --> 00:05:20,849 Andrew: that you've got to jump into a very expensive advice 106 00:05:20,849 --> 00:05:24,659 Andrew: fee when actually there are stages of advice that you 107 00:05:24,660 --> 00:05:27,029 Andrew: can work through. And there's different types of advice that 108 00:05:27,360 --> 00:05:30,359 Andrew: anyone really can get access to, particularly with their super 109 00:05:30,360 --> 00:05:33,240 Andrew: funds. And so it starts off where you've got the 110 00:05:33,240 --> 00:05:35,940 Andrew: opportunity with most of your super funds to get general 111 00:05:35,940 --> 00:05:40,498 Andrew: advice. And general advice really is about concepts of financial 112 00:05:40,500 --> 00:05:44,820 Andrew: literacy or product education. And it might be where you're 113 00:05:44,820 --> 00:05:47,880 Andrew: asking some of the nuances of the products, what are they 114 00:05:47,970 --> 00:05:50,729 Andrew: made up of, what do they consist? What does that 115 00:05:50,730 --> 00:05:54,479 Andrew: therefore mean in terms of retirement planning concepts? And you 116 00:05:54,480 --> 00:05:57,600 Andrew: can also work with your superfund to get access to 117 00:05:57,990 --> 00:06:01,890 Andrew: those questions and those answers. You can then move into 118 00:06:01,980 --> 00:06:05,400 Andrew: what's called intrafund advice. And again, through your superfund, you're 119 00:06:05,400 --> 00:06:08,849 Andrew: already paying a fee which gives you access to a service 120 00:06:08,849 --> 00:06:12,900 Andrew: which might answer questions like are contribution amount's right for 121 00:06:12,900 --> 00:06:17,399 Andrew: me, or how should my funds be invested? Also, how 122 00:06:17,400 --> 00:06:21,660 Andrew: much insurance you might need. And so that's typically advice 123 00:06:21,660 --> 00:06:24,630 Andrew: that's already paid for, so it's no additional cost to 124 00:06:24,630 --> 00:06:27,540 Andrew: you, particularly with your super fund. It's only then when 125 00:06:27,540 --> 00:06:30,299 Andrew: you step into more complex matters where you might be 126 00:06:30,300 --> 00:06:35,429 Andrew: wanting to think about complex retirement planning or your spouse 127 00:06:35,699 --> 00:06:37,950 Andrew: or perhaps products that are outside of your super fund, 128 00:06:38,310 --> 00:06:40,799 Andrew: such as your non- super monies. And it's in that 129 00:06:40,860 --> 00:06:44,729 Andrew: instance where you move into comprehensive personal advice, and that's 130 00:06:44,730 --> 00:06:48,089 Andrew: typically a fee for service arrangement. And that's where you'd 131 00:06:48,089 --> 00:06:51,000 Andrew: be working with a professional advisor or a professional advisory 132 00:06:51,000 --> 00:06:54,089 Andrew: firm and they'd be working through your whole life circumstances 133 00:06:54,089 --> 00:06:56,790 Andrew: and trying to establish that game plan, sort of step 134 00:06:56,790 --> 00:07:00,510 Andrew: one through six. And often that also comes with an 135 00:07:00,510 --> 00:07:03,360 Andrew: ongoing relationship with that financial advisor so that they can 136 00:07:03,690 --> 00:07:05,190 Andrew: lead you through that path and, as I said, be 137 00:07:05,190 --> 00:07:05,850 Andrew: your honest friend. 138 00:07:06,599 --> 00:07:08,279 Sean: Stay with me, Andrew. We'll be back in a minute. 139 00:07:13,710 --> 00:07:17,670 Michael : Sean, take care of tomorrow with award- winning value at UniSuper. 140 00:07:17,820 --> 00:07:22,019 Sean: Michael, UniSuper was awarded the most satisfied members by Canstar 141 00:07:22,020 --> 00:07:25,259 Sean: in 2023 and gives you the flexibility to stay in 142 00:07:25,259 --> 00:07:28,230 Sean: touch with over 30 locations Australia- wide. 143 00:07:28,350 --> 00:07:32,010 Michael : And if you want to enjoy UniSuper's awarded value, lower 144 00:07:32,010 --> 00:07:35,550 Michael : fees, and great long- term performance, all Australians can join 145 00:07:35,550 --> 00:07:40,080 Michael : UniSuper today at unisuper. com. au. Please remember that past 146 00:07:40,080 --> 00:07:44,460 Michael : performance is not an indicator of future performance. Consider UniSuper's PDS and TMD 147 00:07:44,460 --> 00:07:47,819 Michael : on its website and your circumstances before making decisions. 148 00:07:54,090 --> 00:07:56,790 Sean: My guest today is Andrew Gregory, head of financial advice 149 00:07:56,790 --> 00:08:01,920 Sean: and education at UniSuper. Now, are we talking about people 150 00:08:02,099 --> 00:08:05,759 Sean: accumulating for retirement or are we talking about people who 151 00:08:05,820 --> 00:08:10,350 Sean: are retirees? So the post- accumulation phase, so they're decumulating, 152 00:08:10,350 --> 00:08:13,260 Sean: I suppose. Is it specifically for older Australians or is 153 00:08:13,260 --> 00:08:15,959 Sean: it for everyone what you're talking about, the advice within super? 154 00:08:16,590 --> 00:08:20,969 Andrew: It's for everyone because both in accumulation, Sean, you've got 155 00:08:20,969 --> 00:08:24,299 Andrew: certain questions, have I got enough insurance as an example, 156 00:08:24,540 --> 00:08:28,410 Andrew: or really importantly, are my funds invested appropriately, and do 157 00:08:28,410 --> 00:08:31,080 Andrew: I have my asset mix set up in a way 158 00:08:31,080 --> 00:08:33,478 Andrew: that's going to optimize my returns over the long term? 159 00:08:33,929 --> 00:08:36,419 Andrew: And so I do see it's actually for both accumulation 160 00:08:36,509 --> 00:08:39,899 Andrew: and for retirees. The whole irony though is you only 161 00:08:39,900 --> 00:08:43,378 Andrew: think about it when you're getting close to retirement. But 162 00:08:44,040 --> 00:08:46,350 Andrew: the trick here is do it early. Go and see 163 00:08:46,350 --> 00:08:49,078 Andrew: your superfund now. Get that investment mix set up so 164 00:08:49,620 --> 00:08:51,481 Andrew: it aligns really to where your risk profile should be. 165 00:08:51,481 --> 00:08:55,799 Sean: Yeah, it's a poorly worded question that really. I suppose a 166 00:08:55,799 --> 00:08:59,099 Sean: better question is are we talking about 50- year- olds 167 00:08:59,458 --> 00:09:01,228 Sean: or can you do it when you're 20? And I 168 00:09:01,260 --> 00:09:04,290 Sean: think your answer there, particularly when you're talking about the mix 169 00:09:04,500 --> 00:09:06,929 Sean: of products that you've got in your super account, you 170 00:09:06,929 --> 00:09:08,880 Sean: can do it as soon as you start, presumably. 171 00:09:08,880 --> 00:09:12,540 Andrew: Of course, of course. Remember, chaos to order, order to 172 00:09:12,540 --> 00:09:16,679 Andrew: better structures. Make sure your superannuation is set up for 173 00:09:16,679 --> 00:09:20,160 Andrew: the long term to maximize returns over that 30, 40 years 174 00:09:20,160 --> 00:09:22,800 Andrew: that you've got ahead of you. Also, remember when you're 175 00:09:22,800 --> 00:09:24,570 Andrew: early in your career, you don't have a lot of 176 00:09:24,570 --> 00:09:27,750 Andrew: assets, but you do have something which is vital and 177 00:09:27,750 --> 00:09:30,960 Andrew: that's your income over the next 30 to 40 years. 178 00:09:30,960 --> 00:09:34,289 Andrew: So conversations around insurance as well are vital at that 179 00:09:34,289 --> 00:09:37,949 Andrew: stage because it's that consumption theory that plays out where 180 00:09:38,280 --> 00:09:40,800 Andrew: these discussions are very important. But as you accumulate wealth 181 00:09:40,800 --> 00:09:43,949 Andrew: over time, insurance becomes less and less of a concern. 182 00:09:44,340 --> 00:09:47,460 Sean: The quality of advice review is a review the government 183 00:09:47,460 --> 00:09:52,409 Sean: undertook looking to make advice more affordable to everyone really. 184 00:09:52,679 --> 00:09:54,868 Sean: One thing that they're talking about is this concept of 185 00:09:54,870 --> 00:09:58,199 Sean: a qualified advisor. Even that within itself, so a qualified 186 00:09:58,200 --> 00:10:01,650 Sean: advisor might be attached to a super fund, it suggests 187 00:10:01,650 --> 00:10:05,429 Sean: the government is trying to make advice more available to 188 00:10:05,429 --> 00:10:06,059 Sean: more people. 189 00:10:06,420 --> 00:10:08,610 Andrew: Correct. And Sean, if you go back to the spirit 190 00:10:08,610 --> 00:10:13,590 Andrew: of QAR, it's about improving access and improving affordability of 191 00:10:13,590 --> 00:10:17,400 Andrew: advice. And there's two dynamics at play. You've got supply 192 00:10:17,610 --> 00:10:20,160 Andrew: and you've got demand. And so on the demand side, 193 00:10:20,400 --> 00:10:23,490 Andrew: effectively we've got 3. 6 million Australians coming through the 194 00:10:23,490 --> 00:10:25,559 Andrew: system who are going to be retiring in the next 195 00:10:25,559 --> 00:10:29,549 Andrew: 10 years. On the supply side, at the moment, we've 196 00:10:29,549 --> 00:10:34,410 Andrew: got about 16,000 advisors. And that supply- demand issue is 197 00:10:34,410 --> 00:10:37,800 Andrew: that the traditional advice models aren't adequate in order to 198 00:10:37,800 --> 00:10:41,550 Andrew: service the needs of Australians. And so government's been proposing 199 00:10:41,639 --> 00:10:44,370 Andrew: a raft of changes that improve access and affordability, and 200 00:10:44,370 --> 00:10:47,098 Andrew: one of those is a qualified advisor. And in essence 201 00:10:47,100 --> 00:10:50,429 Andrew: what it is, it's a different category of advisor that 202 00:10:50,429 --> 00:10:53,458 Andrew: still provides personal advice, but would do so in a 203 00:10:53,460 --> 00:10:56,429 Andrew: way that is unable to charge a fee but would 204 00:10:56,429 --> 00:11:00,360 Andrew: deal with more simple retirement matters. And so for a superfund, it's 205 00:11:00,360 --> 00:11:04,080 Andrew: a really interesting concept to tease out because where super 206 00:11:04,080 --> 00:11:08,520 Andrew: funds can provide general advice and also intrafund advice, they 207 00:11:08,520 --> 00:11:11,700 Andrew: can now start to think through how might this qualified 208 00:11:11,700 --> 00:11:16,559 Andrew: advisor play a role in expanding the supply of advice 209 00:11:16,559 --> 00:11:18,690 Andrew: that they can provide to their membership. And so it's 210 00:11:18,690 --> 00:11:22,170 Andrew: something we're genuinely thinking through. There's a lot to go 211 00:11:22,170 --> 00:11:24,630 Andrew: through from a legislative point of view, and there's a 212 00:11:24,630 --> 00:11:26,940 Andrew: lot of detail that still is missing Sean, if I'm 213 00:11:26,940 --> 00:11:30,420 Andrew: honest. But conceptually, it makes a lot of sense to 214 00:11:30,450 --> 00:11:33,900 Andrew: increase the supply of the workforce so long as it's 215 00:11:33,900 --> 00:11:37,139 Andrew: backed by a really strong digital advice engine that will 216 00:11:37,139 --> 00:11:41,219 Andrew: allow Australians to get access to advice and in particular 217 00:11:41,219 --> 00:11:44,520 Andrew: intrafund advice when they're already paying a fee as a 218 00:11:44,520 --> 00:11:45,750 Andrew: member of their super fund. 219 00:11:46,530 --> 00:11:49,230 Sean: Andrew, I can't let you go when we're talking so 220 00:11:49,230 --> 00:11:52,139 Sean: close to the end of the financial year. If I'm 221 00:11:52,139 --> 00:11:54,838 Sean: thinking, okay, I've got few more days before June 30, 222 00:11:55,020 --> 00:11:58,020 Sean: what should I be thinking about as we tick over 223 00:11:58,080 --> 00:12:00,029 Sean: to July 1? And I suppose I'm thinking of as 224 00:12:00,119 --> 00:12:02,880 Sean: an income earner, but also a small business and an employer. 225 00:12:03,510 --> 00:12:06,030 Andrew: Yeah. Well, depending on when we get this podcast out, 226 00:12:06,030 --> 00:12:08,490 Andrew: Sean, you might have a very short space of time, 227 00:12:08,490 --> 00:12:10,108 Andrew: but there's a few things that are on my mind 228 00:12:10,770 --> 00:12:15,030 Andrew: both pre 30 June, but also post 1 July. And 229 00:12:15,030 --> 00:12:18,149 Andrew: if I look pre 30 June, you've got an opportunity 230 00:12:18,150 --> 00:12:21,750 Andrew: up until then to make the most of your carryforward 231 00:12:21,750 --> 00:12:27,599 Andrew: concessional super contributions and largely your '18-19 limit will fall 232 00:12:27,599 --> 00:12:30,780 Andrew: away at the end of this financial year. And that's 233 00:12:30,780 --> 00:12:35,010 Andrew: really a valuable tax deduction for those that may not 234 00:12:35,010 --> 00:12:38,370 Andrew: have used that provision in that '18-19 year, but it's 235 00:12:38,370 --> 00:12:40,770 Andrew: able to be used in this financial year. You look 236 00:12:40,770 --> 00:12:43,920 Andrew: back the past rolling five years, and it could be 237 00:12:43,920 --> 00:12:46,620 Andrew: a lost opportunity if you don't do that before 30 238 00:12:46,620 --> 00:12:47,160 Andrew: June. But... 239 00:12:47,490 --> 00:12:50,040 Sean: Just I'm going to jump in that without. So essentially 240 00:12:50,040 --> 00:12:53,520 Sean: that's when you haven't used your maximum super contribution limit, 241 00:12:54,000 --> 00:12:54,598 Sean: is that right? 242 00:12:54,630 --> 00:12:56,578 Andrew: Yeah, correct. It's a scheme for those that have got 243 00:12:56,580 --> 00:13:00,060 Andrew: a balance under 500k, and it just allows you to 244 00:13:00,360 --> 00:13:04,080 Andrew: make the most of those concessional contribution caps that were 245 00:13:04,080 --> 00:13:07,170 Andrew: unused in the previous five years. And so in this 246 00:13:07,170 --> 00:13:10,080 Andrew: particular year, you'd need to use your contribution cap up 247 00:13:10,080 --> 00:13:13,080 Andrew: to the 27.5, and then everything above that would start 248 00:13:13,080 --> 00:13:15,510 Andrew: to offset from those five years prior. So it's the '18- 249 00:13:15,510 --> 00:13:19,679 Andrew: 19 year that falls away. If I go post 1 250 00:13:19,679 --> 00:13:22,770 Andrew: July, there's some pretty exciting things happening for cash flow. 251 00:13:23,160 --> 00:13:25,920 Andrew: And so number one, stage- three tax cuts are coming 252 00:13:25,920 --> 00:13:29,579 Andrew: through. And for those that are looking forward to this, 253 00:13:29,639 --> 00:13:32,640 Andrew: this will make a material difference to most people's paychecks. 254 00:13:32,640 --> 00:13:35,880 Andrew: And I think if you're earning $ 120,000 at the moment, this 255 00:13:35,880 --> 00:13:41,310 Andrew: will be about $2, 678 back in your pocket. If you earn $190, 000, 256 00:13:41,670 --> 00:13:44,730 Andrew: it'll be the better part of $ 4, 524 back in 257 00:13:44,730 --> 00:13:48,119 Andrew: your pocket. And so I guess the key message here, 258 00:13:48,119 --> 00:13:51,630 Andrew: Sean, is do something meaningful with it. Don't just let 259 00:13:51,630 --> 00:13:53,790 Andrew: it slide away because I think in a few months 260 00:13:53,790 --> 00:13:56,789 Andrew: time you'll just spend it and it'll be forgotten about. 261 00:13:56,790 --> 00:14:00,480 Andrew: So make some intentional plans around that. Second thing would 262 00:14:00,480 --> 00:14:06,929 Andrew: be that concessional caps are going from 27,500 to $30,000. So again, 263 00:14:07,050 --> 00:14:09,690 Andrew: have a think about what you're doing with your superannuation 264 00:14:09,720 --> 00:14:12,240 Andrew: contributions and are you making the most of that limit 265 00:14:12,240 --> 00:14:15,629 Andrew: for this particular year. And particularly those that are high- 266 00:14:15,630 --> 00:14:19,139 Andrew: income earners, just make sure you're managing those caps and 267 00:14:19,139 --> 00:14:23,910 Andrew: those limits appropriately as well. And your SGC is going from 268 00:14:23,940 --> 00:14:26,850 Andrew: 11 to 11.5%, so there'll be a little bit more super 269 00:14:26,850 --> 00:14:29,430 Andrew: going in. And for those that are on total fixed 270 00:14:29,430 --> 00:14:32,309 Andrew: contracts in their employment, again, that might be something that's 271 00:14:32,309 --> 00:14:35,460 Andrew: offset. So there's this contra that's happening between super and 272 00:14:35,460 --> 00:14:37,769 Andrew: tax cuts that you'll just need to manage in your 273 00:14:37,770 --> 00:14:40,289 Andrew: cash flow. And then the final thing is your non- 274 00:14:40,289 --> 00:14:45,000 Andrew: concessional cap limits will go from 110 to 120 next year as 275 00:14:45,000 --> 00:14:47,400 Andrew: well. So lots of opportunities for super, Sean. 276 00:14:47,790 --> 00:14:50,010 Sean: Absolutely. Andrew, thank you for talking to FEAR & GREED. 277 00:14:50,370 --> 00:14:51,660 Andrew: My pleasure. Great to be with you. 278 00:14:52,230 --> 00:14:55,049 Sean: That was Andrew Gregory, head of financial advice and education 279 00:14:55,049 --> 00:14:58,170 Sean: at UniSuper, a great supporter of this podcast. This is 280 00:14:58,170 --> 00:15:00,870 Sean: the FEAR & GREED Business Interview. 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