Superannuation bills have now been passed and will become law, are you ready?
The key measures which have a commencement date of 1 July 2017 include:
- The concessional contributions cap is reduced to $25,000. This can be made as employer or personal tax deductible contributions (or a mix of both – subject to the 10% rule.)
- The non-concessional contribution cap is reduced to $100,000 pa (or $300,000 under the bring forward provisions). While you are also prohibited from making further non-concessional contributions where a member’s total superannuation balance is more than $1.6 million.
- Introducing a $1.6 million ‘transfer balance cap’ – the limit of the amount that can be transferred to the pension phase, where earnings are tax-free. This $1.6 million cap applies also the death benefit income streams and defined benefit income streams.
- Transition to Retirement Income Streams will no longer be eligible for income tax concessions (at the superannuation fund level.)
- Continuation of the low income superannuation tax offset for member’s whose income level is less than $37,000.
- Eligibility for spouse contribution rebates are extended, by increasing the annual income threshold to $37,000.
- Lowering the income threshold for Division 293 tax to $250,000.
- Abolishing the anti-detriment payment.
- The new concessional contributions catch-up regime, providing your total super balances are less than $500,000 commences from 1 July 2018
6 FREE 45 MINUTE SESSIONS
If you would like to find out how these changes may affect your Superannuation Plans, we have 6 FREE 45 minutes sessions to be held in December only with Tim McCarthy.
Only available to the first 6 people to book online.