2017 Superannuation Reforms

This Super Update will provide you with information about the impending Superannuation Reforms. Please note that this newsletter is of a general nature only and does not take into account your personal needs or financial situation.

Please click on each section below for more details.

Concessional contribution caps dropping to $25,000

As of 1 July 2017 any personal deductible contribution to your super fund cannot exceed $25,000 per annum (irrespective of age).

$1.6 Million transfer balance cap

From 1 July 2017, there is a limit on how much of your super you can transfer from your accumulation super account(s) to tax-free ‘retirement phase’ account(s) to receive your pension income.

Non-concessional contribution changes

The Government has reduced the annual cap to $100,000 as of 1 July 2017. The current cap is $180,000 per year.

Transitional Capital Gains Tax (CGT) Relief

Transitional CGT relief available where trustee(s) of super fund are required to move assets to accumulation phase due to an introduction of transfer balance cap or removal of earnings tax exemption for Transition to Retirement (TTR) income streams.

Ability to claim tax deduction for personal contributions

From 1 July 2017, the Government will allow all fund members under the age of 65, and those members aged between 65 & 74 (who satisfy the work test), to claim a tax deduction for personal contributions made up to the concessional contributions cap of $25,000 per annum.

Reduction in Div 293 tax threshold

From 1 July 2017, the government will lower the Division 293 income threshold to $250,000.

Transition to Retirement Pensions (TTR)

From 1 July 2017, the government will remove the tax-exempt status of earnings from assets that support a TTR.

Trustees now need to update their SMSF Deed

Not since the introduction of the Super Reforms in 2007 have we seen such significant changes to the superannuation laws. These new changes have come into effect from the 2016 budget measures with the policy objective to ensure that the superannuation system is equitable and sustainable for future generations.

The Trust Deed forms a significant part of the governing rules of your SMSF and hence regular updates are required so as to ensure that the deed reflects current superannuation law. Out of date provisions can disadvantage you as members as you may not fully benefit from strategic opportunities, and it can be a very costly process with the introduction of administrative penalties for SMSF Trustees.

General Advice Warning
The content of this website is of a general nature only and has not been prepared to take into account any particular investor's objectives, financial situation or particular needs. Australian Superannuation & Compliance (ASC) does not provide financial product advice or recommend any financial products: This applies equally to those financial products which are established for your SMSF when you become a client of ASC. We recommend that you seek professional advice from a financial adviser before making any decision to purchase any financial product including establishing an SMSF.
While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions. When establishing a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including an ATO Supervisory Levy , Company Trustee Setup Fee (where applicable) and Investment Fees .
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