Is your Super ready for 1st July 2017?

With the 30 June looming upon us, now is the time to consider all things Super and ensure you have a plan and strategy in place.
Superannuation
by
Kristie Drain
May 30, 2017

With the 30 June looming upon us, now is the time to consider all things Super and ensure you have a plan and strategy in place.

Here is a brief snapshot of some of the key points that you may need to prepare for prior to the New Financial Year:

 

1. Concessional Contributions

From 1st July 2017, the concessional contribution will be reduced to $25,000 for all ages. You have until the 30th June 2017 to access the higher contribution cap levels, being $30,000 if you’re under 49 and $35,000 if your over 49.

2. Non-Concessional Contributions

From 1st July 2017, the non-concessional (after tax) contributions will be reduced to $100,000 and if your superannuation balance is $1.6 million or more this will reduce to Nil. The current cap of $180,000 stands until the 30th June 2017, with bring forward cap advantages and transition conditions.

 

3. Retirement Pension Cap – Transfer Balance Cap

From 1st July 2017, the transfer balance cap will come into play on retirement income streams. The transfer balance cap is $1.6 million and this is the limit that can be placed into retirement income stream. It’s important to note this balance, as penalties can arise if you exceed this cap.

 

4. CGT Relief

If on the 1st July 2017 you are required to reduce your retirement income streams down to meet the Transfer Balance Cap requirements of $1.6 million there are transitional CGT relief available in certain circumstances. Utilising this CGT Relief can allow the cost base of impacted assets to be reset.

 

5. Transition to Retirement Pensions

From the 1st July 2017, the earnings that support a Transition to Retirement Pensions will lose their income tax exemption. This means the earnings that support these pension pensions will be taxable at 15%.

As always, our team is here to help, so get in touch if you have any questions or needed assistance with your Superannuation compliance.

Kristie Drain

CrossFit junkie. Beach lover. SMSF Queen. Mum to two boys. Always up for bushwalks.