As you may be aware, the latest Government Super reforms are nearly upon us and these reforms will affect many people in different ways. Below are a few important points you should be aware of. If you are, or someone you know is concerned about these reforms, please contact our office.
- Changes to concessional contributions
What are the changes?
- Reduction in the concessional contribution cap to $25,000 per annum regardless of age
- Carried forward concessional cap for account balances below $500,000
- All individuals under age 65 (and all those under age 75 who pass the work test) will be eligible to claim a tax deduction for personal contributions made to super
- Reduction in income threshold to $250,000 where additional super contribution tax applies
- Refund of contribution tax for people earning less than $37,000
- Changes to non-concessional contributions
What are the changes?
- Introduction of an annual non-concessional contribution cap of $100,000 from 1 July 2017.
- Limiting non-concessional contributions to individuals with superannuation balances below $1.6m from 1 July 2017.
- Retaining the existing annual non-concessional cap and bring forward provisions for the 2016/17 financial year.
- Tips for retirement planning
What are the changes?
- A maximum limit of $1.6 million is permitted to be transferred into retirement income stream products.
- Excessive balances can remain in super in accumulation phase
- Earnings on assets supporting transition to retirement income streams will be taxed within super
For your convenience, if you would like more information about these reforms, please click on the below flyers.
Read more about the reduction to concessional contribution caps Fed Budget Changes to Concessional Contributions
Read more about the reduction to non-concessional contribution caps Federal Budget Changes to Non_Conconsessional Contributions
Read more about the balance limit you can have in a pension account Federal Budget Tips for retirement planning
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