As you may be aware, there are a number of changes that have been made to superannuation effective from 1st July 2017. Do they affect you?
Superannuation reform changes which may impact you
Concessional contribution cap reducing to $25,000 p.a. (also relevant to salary sacrifice arrangements)
Non-concessional contribution cap reducing to $100,000 p.a. (if total super balance is less than $1.6m) and 3 year bring forward rule for those under 65 reducing to $300,000
No further non-concessional contributions can be made once your total super balance exceeds $1.6m
A $1.6m cap on amounts that can be transferred to “retirement phase” (pension accounts, including ones commenced before 1 July 2017)
Greater access to tax deductions for personal contributions
Earnings on Transition to Retirement Income Streams (TRIS) will no longer be tax free within the fund
The Division 293 Income threshold is reducing to $250,000 from $300,000 (extra 15% tax on concessional contributions) for higher income earners
In addition, from 1st July 2018 there will be an ability to rollover unused concessional contribution caps for up to five years for those with super balances of $500,000 or less.
For your reference, the budget.gov.au website has a series of fact sheets with additional information about the above reforms.
Should you require any further information in relation to these changes please contact our office.
For more information, click here.