From 1st July 2017 a number of significant changes to the Australian superannuation laws will take effect.
Among the changes are the Superannuation contribution caps and retirement phase (pension phase) accounts, as follows:
• Reduction in the annual concessional contributions cap to $25,000 for the 2017-
18 year irrespective of age. The cap will increase each following year with
• Reduction in the annual non-concessional (after-tax) contributions cap from
$180,000 to $100,000 for the 2017-18 year. The cap is set at four times the
concessional contributions cap.
• New transfer balance cap of $1.6 million on the total amount that can be
transferred into the tax-free retirement phase for account-based pensions.
The tax-free status of earnings from superannuation assets supporting transition-to-retirement income streams (TRIS) has been removed. Instead from 1st July 2017, these earnings are taxed at the rate of 15% for complying super funds or 47% for non-complying funds.
For guidance on how these and other changes affect your superannuation entitlements as we approach the new financial year, please contact our office by email or phone 0404 033 464 and to arrange an appointment.
Transcend Accounting Pty Ltd holds a Limited Australian Financial Services Licence #488766 with ASIC.
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things. You should also obtain a copy of and consider the Product Disclosure Statement for any financial product mentioned before making any decision.