We are now having to adopt the new superannuation changes that came into effect on 1st July 2017

The following are the main changes that are currently impacting superfunds:

  • $1.6 million is the maximum individual member balance which can be in pension phase & any investment income earnt by the fund for members with balances over this limit will now be taxed at 15%
  • Transition to Retirement pensions no longer receive any tax exemption on the fund’s investment income
  • Contribution caps are reduced with some members who have a total member balance over $1.6M being ineligible to further contribute non concessional contributions

Contribution caps are as follows:

Concessional contribution cap is now $25,000 regardless of your age

Non concessional annual cap is $100,000 (3 year bring forward rule may apply in limited circumstances)

Members are still required to satisfy the work test if you are over 65

  • High income threshold on which an additional 15% tax is payable on your concessional contributions has been reduced to $250,000
  • Downsizer contributions can be made from 1st July 2018 and allows members who are over 65 and sell their main residence, if they had held it for at least 10 years, to contribute up to $300,000 per member (subject to specific rules)
  • Total Balance Account Reporting (TBAR) must be filed with the ATO to track the amount a member has in pension mode via super
  • First home saver scheme in now operational
  • 10% work test removed which will allow more flexibility to claim a personal tax deduction

Please call Kim Chapman on 03 9787 5100 to discuss any of the above

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