A range of momentous changes to the Superannuation laws is fast approaching. Some critical changes include:
- Pension transfer balance cap – limit of $1.6 million for each member’s total Superannuation pension balance. Any surplus will be liable to 15% tax compared with tax free previously;
- Non-concessional contribution reduction – subject to $100,000 for any member with a super balance of less than $1.6 million. For members with balances over $1.6 million, no eligibility for make further non-concessional contributions apply;
- Transition to retirement pension (TRIS) – the tax free component ends on 30 June 2017 when earnings on assets supporting TRIS will be taxed at the new rate of 15%. TRIS will also not count towards the $1.6 million transfer balance gap;
- Concessional contributions cap reduced to $25,000 per year. Dependent upon your age it means an extra $5000 or $10,000 can be put into super this year.
Dates to remember:
- 15 May 2017* – SMSFs must lodge annual return and pay tax if due.
- 15 June 2017* – SMSFs must lodge annual return if no tax is due payable
- 30 June 2017 – Assets should not exceed $1.6 million
- 30 June 2017 – take advantage of concessional limit caps to maximise payments