Changes to Superannuation

Changes to Superannuation from 1st July 2017 are the most significant in a decade. The changes aren’t limited to those with large superannuation balances or people on a higher income.

If you would like to discuss these changes or any strategies that need to be implemented before 30th June 2017, make an appointment for a consultation.

• The annual concessional contribution cap will reduce to $25,000 p.a. for everyone. For the year ending 30th June 2016 the caps are $35,000 for members aged 49 or over otherwise it is $30,000.

• The annual non concessional contributions cap will be lowered from $180,000 to $100,000 p.a. The final opportunity to contribute $540,000 under the current non concessional caps must be made before 30th June 2017.

• A low income superannuation tax offset may be available on your concessional contributions if you income is less than $37,000 p.a.

• The Spouse Superannuation Tax Offset will be expanded by raising the income threshold for the spouse to $40,000 p.a.

• If you have a superannuation account balance of more than $1.6m you will no longer be able to make non-concessional contributions

• Earnings in your superannuation fund for income earned on transition to Retirement income streams will now be taxed up to 15% whereas they were previously tax free.

• There will be a $1.6m cap on the total amount you can transfer or hold in a tax free retirement income stream product.

• Currently if you are an employee you are only able to make concessional superannuation contributions through a salary sacrifice arrangement. From 1st July 2017 employees will be able to make direct contributions to their superannuation fund.

• From 1st July 2018 onwards, if you fail to use your annual concessional contribution cap of $25,000 then you can carry forward the unused portion for up to 5 years , provided you have a total superannuation balance of less than $500,000.

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