Warning on Super Contributions
The 2016-17 Federal Budget announcements on superannuation have caused a lot of concern for Australians.
The 2016-17 Federal Budget announcements on superannuation have caused a lot of concern for Australians, given the extent of the changes. Some of the core concerns include:
- A $500,000 lifetime non-concessional contributions cap from Budget night
- A reduction in concessional contribution cap from 1 July 2017
- The removal of the tax exemption on earnings supporting transition to retirement income streams (TRIS) from 1 July 2017
- The extension of the 30% super contributions tax on high income earners
The extension of the 30% super contributions tax on high-income earners
The main area to be mindful of is the $500,000-lifetime cap on non-concessional contributions as what you do now, may have a lasting and potentially detrimental impact.
Under the current rules, you can use the 'bring forward rule' and contribute up to $540,000 across a three year period to your super fund. Anyone utilising these rules in the current year may find that the proposed rules, if they come into effect, will radically change their position.
It's really important that anyone contemplating making large contributions to super or utilising the bring-forward rule, get advice first.
Contact us on 02 9957 4033 to speak to your accounting team about the implications of the super changes.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.