With my own experience of feeling bombarded at times with emails that I don’t seem to have the time to read or forget to read, the newsletter delivery cycle will be a bi-monthly newsletter commencing February 2017.
I hope that this will keep the newsletter interesting and relevant. If on the odd occasion there is important ATO updates that will affect taxpayers in a short term – a news Bulletin will be published addressing that topic only.
The big news in Superannuation update for 2017:
A summary of the reforms are:
Reductions have been made to the concessional contribution cap, lowered to $25,000 a year.
Non-concessional super contributions will be limited to $100,000 per year from 1 July, 2017 (currently $180,000)
Introduction of a $1.6 million transfer balance cap has been finalised, placing limits on the amount an individual can transfer into the tax-free earnings retirement phase. The measure is also applied to death benefit income streams.
Introduction of additional income tax rules on recipients of certain defined benefit income streams in excess of $100 000 per annum.
Reductions have been made to the threshold at which high-income earners pay Division 293 tax on their concessional taxed contribution to superannuation to $250,000.
Members with a total superannuation balance of less than $500,000 will be allowed to make catch-up concessional contributions from 1 July, 2018. Please note that an individual cannot have an unused concessional contributions cap amount before 1 July, 2018 for the purposes of the catch-up provisions. What this means is that the 2019/2020 financial year is the first year in which you can apply your unused concessional contributions cap amounts.
Tax offset is now allowed where spouse income is less than $37,000.
Allowance of a deduction for personal contributions without testing the proportion of employment income received (the 10% test).
Introduction of a low income superannuation tax offset to replace the low income superannuation contribution.
Abolishment of the anti-detriment payment.
Removal of the tax exempt earnings for transition to retirement income streams.
This communication includes factual information only and does not include general or personal financial product advice.
Seeking additional advice
Please note that I will continue to review the potential impact of these changes and communicate with clients accordingly. In the meantime, should you have any queries relating to the superannuation changes and how they may affect you, we encourage you to contact your financial adviser.
Christmas period business hours
This office will be unattended from 4pm Thursday 22nd December and will re-open 9am Monday 9 January – as always I am contactable by mobile phone in the case of emergency or if time critical advice is required.