Changes to Superannuation 1 July, 2017
The changes to superannuation from 1 July are some of the biggest changes Australia has seen in the last 10 years.
Are you Super ready?
At Patrick Rowan & Associates, we want to make sure that you are equipped with accurate information to make decisions. Decisions to ensure your superannuation is working for you and that you have enough money to enjoy the retirement you’ve been dreaming about.
Don’t let these recent changes spoil your dream retirement.
We can help you take control now. But, you must take action before 1 July, 2017.
Find out how the changes will impact you. We are running a limited number of Superannuation Briefings. To find out about the next session, please contact Kellie Ryan Tel: 52 21 7655.
An overview of superannuation changes from 1 July, 2017:
Changes to the amount you can contribute to superannuation
A reduction in annual Non-Concessional Cap and Concessional Cap reduces the amount of money you are able to contribute to superannuation.
If you wish to take advantage of the larger existing caps before 1 July 2017, please contact us immediately to put this in place.
Concessional contributions – changes from 1 July 2017
Concessional (before tax) contributions form part of your super fund’s assessable income.
The contributions include employer contributions and personal contributions, and are taxed at a rate of 15%.
From 1 July 2017:
- The amount of concessional contributions will be capped annually at $25,000 (previously the cap was based on age)
- Threshold for Division 293 tax will be reduced from $300,000 to $250,000 per annum.
Division 293 tax is an additional 15% charged on an individual’s taxable concessional contributions above the threshold of $250,000.
Non-Concessional contributions – changes from 1 July 2017
This may well be the last year you are able to make non-concessional contributions to your fund.
The most common non-concessional contributions are personal member contributions for which no income tax deduction is claimed.
From 1 July 2017:
- The annual non-concessional contribution will be reduced to $100,000 (four times the concessional cap), down from $180,000.
If your TOTAL superannuation balance is more than $1.6 million at 30 June the previous year, the non-concessional contribution will be NIL
- The bring forward cap will reduce to $300,000. There are transitional arrangements for clients who trigger the cap prior to 1 July 2017 and we can discuss this further with you.
Pension changes from 1 July, 2017
- Each member within the Superannuation Fund will have a $1.6 million Transfer Balance Cap on amounts which can be transferred to retirement phase pensions.
Transition to Retirement Pensions are not included in this cap
- Transition to Retirement Pensions will lose their tax exempt status.
- Transitional Capital Gains Tax rules will come into effect.
This will allow cost base resetting of assets to market value where individuals need to comply with Transfer Balance Cap or Transition to Retirement Pensions legislative changes as previously outlined.
Where to from here?
The superannuation changes are complex so Patrick Rowan & Associates along with Apt Wealth Partners is offering you the opportunity to attend one of our complimentary, no obligation Superannuation briefings.
Everyone is welcome to attend a session, you don’t need to be a client of Patrick Rowan & Associates. Maybe you just need a second opinion? That’s fine.
Superannuation Changes Briefing
- What are the new superannuation changes?
- How will the changes impact my superannuation?
- How can I boost my superannuation for retirement?
- What action do I need to take before 30 June 2017?
Call us NOW to book in for the next Superannuation Briefing session.
Tel: 52 217655 today and ask for Kellie Ryan