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.
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.
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.
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.
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 Out of date provisions can disadvantage you as members as you may not fully benefit from strategic opportunities, and it can be a very costly process with the introduction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.