The changes to the super system, announced by the government in the 2016–17 federal budget, have now been passed by Parliament. Overview of superannuation system changes for SMSFs.
As reflected in the name of the legislation, the Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016, these changes were designed to improve the sustainability and fairness of Australia’s superannuation system. Most of the changes will commence from July 1, 2017.
An ATO overview of each of the changes can be found by clicking on the links below.
The ATO says more detailed information is being progressively published to help SMSF trustees as well as everyday taxpayers understand the changes, how they may affect funds, and what fund members may need to know and do now or in the future as an SMSF trustee.
The ATO advises that interested SMSF trustees can subscribe to super updates by selecting “super” in the subscription choices on its subscription service page to receive an email or RSS feed alert.
Overview of super changes
Spouse tax offsetPersonal superannuation contributions deductionLow income superannuation tax offsetIntroducing a transfer balance cap of $1.6M for pension phase accountsReduction of Division 293 income threshold to $250,000Reduction of non-concessional (post-tax) contributions cap to $100,000 per annumReduction of concessional (pre-tax) contributions cap to $25,000 per annumCarry-forward concessional contributions of unused caps over five yearsImprove the integrity of retirement income streamsRemoval of anti-detriment paymentInnovative retirement income stream products
Tax Wrap podcast Tax & Super Australia’s Andy Nguyen and Denys Smerchanskyi discuss what we know so far about the superannuation changes. Listen here (click on episode 103).
#[ATO], [legislation], [retire], [retirement], [Smsf], [smsfs], [super], [superannuation]
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