Zoe Griffiths and Lisa Hurwood outline some key questions for SMSFs to consider regarding the upcoming superannuation changes
Significant legislative changes related to superannuation are coming into effect 1 July 2017. This superannuation reform is the most significant since the 2006/2007 budget.
For self-managed super funds, or anyone nearing retirement, now is the time to explore the updates and the steps you need to take to harness growth potential or prevent any issues. To begin, here are some key questions to consider.
From 1 July 2017 there will be changes to the contribution cap limits. In particular, where an individual’s ‘total superannuation balance’ exceeds $1.6 million, they are no longer able to make non-concessional (‘after-tax’) contributions. Ask:
As part of the reform, if you have more than $1.6 million in a ‘retirement phase’ pension, you will be forced to take action to avoid excess transfer balance tax. Ask:
The tax exemption on the earnings from assets supporting a Transition to Retirement Income Stream (TRIS) will be removed. Ask:
From an estate planning perspective the major change to the legislation is the imposition of a personal $1.6 million cap on pension accounts from 1 July 2017. Ask:
© 2017 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.