Sweeping changes to superannuation contribution rules will begin on 1 July and affect people at all ends of the earnings spectrum.
There have been hundreds of changes to super contribution rules over the years, but no previous reforms have so dramatically affected wealth already in the system.
All members need to carefully consider their situation to see if any action should be taken prior to 30 June 2017.
What does this mean?
There were several changes introduced, as illustrated in the attached factsheet.
Of main concern are:
- – The new $1.6 million transfer balance cap – if your super account balance (per member) is above $1.4m then see your MWM advisor for advice;
- – Transition to Retirement Pensions (TTR) are no longer eligible for the tax exemption. This means your super account’s investment earnings may be subject to tax, where it was previously tax-free;
- – New regulations on additional super contributions
- – Issues for people approaching retirement
- – Tax liabilities for those earning $250,000 or above annually.
How we can help
We are able to undertake a detailed review of your super accounts prior to 30 June 2017 to ensure that you are complying with the new rules, minimising tax, and taking advantage of opportunities to boost your super balance while you can.
Alternatively, if you have any questions or concerns regarding specific reforms, we would be happy to discuss this with you over the phone or in person.
Please call 07 5596 9070 today.