By the time the actual changes are announced on May 3 we will probably be happy to accept painful changes with relief that they weren’t worse. 

Perhaps the government is planning only minor variations hoping we will be pleased. An election is due soon.

It is now less than three weeks until we will know what changes are to be made to the tax rules. Many possibilities have been discussed publicly with some later ruled out. 

Increasing the GST, personal income tax cuts, banning or restricting negative gearing, and company tax cuts have all been discussed, debated, and ruled out. 

“Fairness” and “responsibility” are the current buzz words.

 The government says this will not be a typical pre-election, big spending budget. It will be “responsible”. So when a few modest handouts are given we will be positively surprised. 

One option discussed and not ruled out is abolition of property stamp duty and increased land tax to replace it. Superannuation rules and taxes have been debated at length and are in the firing line. They are to be made “fair”. They must be unfair  at the moment, favouring “the rich”.

It has been widely reported and not denied that the concessional contribution limits will be reduced. These are the amounts that can be contributed by employers and by salary sacrifice. The current annual limits are $30,000 for people under   50 and $35,000 for those older.

They may be reduced to $20,000 or $25,000. If they are the new limits will apply for the new financial year. There is little we can do in advance except take advantage of the current limits this year. 

Only a few years ago the government changed the super rules to allow people over 55 to start pre-retirement pensions with their super even though they were still working.

That decision could be reversed, or limited to people over  60 or 65. 

Reversing the rule would effectively ban the transition to retirement strategy that many use to reduce their tax. Any change would likely apply from budget night. People eligible and not using the strategy already should speak to their financial advisers quickly. 

Those who can save the most tax are people with a good superannuation balance who reached 55 by  June 30, 2015. They should seek financial advice urgently. 

People who set up pre-retirement pensions prior to budget night should not be affected, other than that they may not be able to salary sacrifice as much as previously. 

It takes some time to set up pension accounts so action is needed now. 

It is also possible that a tax on the earnings within pension accounts may be introduced. 

Currently there is no tax on pre or post retirement pension fund earnings. However if a tax is introduced the rate will be lower than that on accumulation super accounts, ensuring pensions remain attractive.

It is possible that a tax on pension account income may only apply to new accounts with existing ones remaining tax free. This is a reason to set up pension accounts pre-budget. 

Non-tax-deductible super contributions may also be subject to tighter restrictions. Currently people can put up to $180,000 into super. They can also bring forward two years contributions for a once-off total of $540,000.

This enables people with lump sums from inheritances or the sale of properties or other assets to put the proceeds into super. The limits on these contributions may be cut. If so the change would most likely apply from budget night so action before then would be smart. 

These superannuation strategies are complex and depend on each person’s individual circumstances so getting personal advice before acting is essential.