Masterclass SMSF – Latest Changes to Pensions and Superannuation

Masterclass SMSF – Latest Changes to Pensions and Superannuation

SMSF – Latest Changes to Pensions & Superannuation

The 2016 Australian Government Budget handed down in May issued the most changes to pensions and superannuation seen in years, as part of the broader reform agenda to improve the sustainability and equity of our super system.

Some of the key elements are outlined here, from 2 main tranches of draft legislation in September –

Clearer Definition of the Objective of Super

“To provide income in retirement to substitute or supplement the Age Pension” and includes smoothing over an individual’s life, management of the risks of retirement, alleviate fiscal pressures on Government, and simplicity and efficiency.

Spouse Contributions

Entitled to tax offset up to max $540 per year for contributions to their spouse’s super whose assessable income is less than $40,000 (currently $13,800).

Reduced tax on contributions for low income earners – new LISTO

Those on income less than $37,000 will have up to $500 paid to cover the 15% employer/concessional contributions tax paid by the super fund.

Pension “Total Balance” cap of $1.6 Million

This is the maximum amount that can be transferred into a Tax-Free income stream for use when eligible for retirement, as from 30 June 2017, and no further contributions will generally be possible to that portion.  Super in excess will remain in accumulation phase, at 15% tax.

Concessional Contribution Caps

From 1 July 2017 the max will be $25,000 down from $30,000 and $35,000 for over 50’s, currently.

Non-Concessional Cap

This is after tax contributions from personal funds – the lower max will be $100,000 for 1 July 2017 with a bring-forward rule of 3 years at one time [$300,000) at once if under 65 and TOTAL super balance is under $1.6 million.

Other Measures

There are also catch-up provisions for those who have not had the full concessional contributions made say due to interrupted work patterns.

Interested to know what self-managed super (SMSF) is all about, and if it is for you? See the slides SMSF Roadmap Overview.

If you want experts who have years of helping others, without the hype – then call for a FREE strategy session today and see how our Super-Connector Service assists you to find the right expert to answer your question – it’s FREE also! No obligation. 0407 361 596, Paul.

Also get your FREE Expert Guide – Self-Managed Super and Youtop right hand side above.


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in 2 Past Newsletter Topics, Masterclass SMSF, Super Tax, Superannuation General and tagged , , , , , . Bookmark the permalink.

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