Last year saw the government introduce the most substantive changes to superannuation we have seen in a decade. With many of these changes coming in to play on 1 July 2017, it is time to start considering how the recent super reforms may affect you, and whether you have any opportunities for planning prior to 30 June 2017.
Below is a summary of the major changes, split into three different categories – accumulators, those transitioning to retirement and retirees. The listed changes come into effect from 1 July 2017 (unless an alternative date is specifically mentioned).
As the changes listed above come into effect on 1 July 2017 (or later), there are many opportunities for planning prior to 30 June 2017. These opportunities will be dependent on various factors and will need to be made in line with your personal circumstances.In addition to the above changes CGT transitional relief could be available to your SMSF, providing an opportunity to reset asset cost bases to those impacted by the above changes, specifically those operating a TRIS or whom have Pension balances above the $1.6million cap.
As a final note, while there have been significant changes to how super works, many of the existing tax concessions for SMSFs will continue post 1 July 2017 so the news is not all bad. For example, most benefits withdrawn after turning age 60 will still remain to be tax free, and funds will still enjoy a flat 15% tax on earnings.
Please contact us to discuss your circumstances and any questions you have about the changes.
DISCLAIMER: This article is intended to provide a general summary only and should not be relied on as a substitute for professional advice.