Look Before You Leap — Super Changes from 1 July 2017

Created on June 14, 2017 2:47 pm

As we’re about to welcome in the 2017/18 financial year and many of the new super reforms, here is summary of what lies ahead:

  • Notify your employer to reduce salary sacrifice amounts to stay within the $25,000 cap for everyone
  • this is even more important if you are contributing to more than one fund and/or your employer is paying your insurance premiums
  • Personal super deductions of up to $25,000 will be available to everyone
  • the 10% test will be removed
  • documentation must still be completed in writing and lodged on time to ensure you are eligible to claim the deduction
  • Before making Non-Concessional Contributions, you need to check total super balances and not just within your SMSF to ensure:
  • you don’t exceed the $1.6m transfer balance cap and/or
  • you are within your 2018 contribution caps whilst taking into account your contribution history
  • If you have existing Account Based or Transition to Retirement Pensions (“TTRs”) in excess of $1.6m and you have not made the irrevocable election by 30 June 2017 to commute the excess back to accumulation to or below this limit, penalties may apply
  • Removal of tax exemption for TTRs
  • Investment earnings on assets supporting TTRs will now be taxed up to 15%
  • It is more important than ever to notify your administrator about changes in your personal circumstances eg. change in jobs, retirement as this can impact your accessibility to your super and eligibility to make contributions

If CGT Relief is available then the fund’s 2017 income tax return must be lodged on time.