The federal budget has been presented and the following is a brief on the superannuation changes. If you wish to discuss further, please do not hesitate to ring Lee on 02 6884 5788 to make an appointment.
Please note the following superannuation changes coming out of the 2016 Budget that may impact you:
- there will be a $1.6 million limit on superannuation pension balances applied to all current and future account based pension from 01 July 2017.
- Tax exemption for earnings in all current and future Transition to Retirement Pensions will be removed.
- Lifetime non-concessional contributions (after-tax) limited to $500,000 will apply to all future non-concessional contributions from 01 July 2017.
- Current maximum concessional contribution limit of $30,000 and transitional limit of $35,000 both reduced to $25,000 from 01 July 2016. Those with superannuation balances lower than $500,000 can carry forward any used amounts for five consecutive years.
- anti-detriment payments relating to the death of a member will cease from July 1, 2017.
On a more positive note:
- access to the low income spouse superannuation tax offset will be increased by the raising of the income threshold for the low income spouse from $10,800-$37,000, and
- a new low income superannuation tax offset will be introduced for people with an adjusted taxable income of up to $37,000 a year in the form of a non-refundable tax offset to the superannuation fund receiving the concessional contribution
To discuss how these proposed changes may impact your superannuation and retirement planning position please contact our office.Back to News