See what you should be aware of and what the new laws could mean for your future goals.<\/p>\n
The government\u2019s May 2016 Federal Budget proposals and several subsequent modifications to its plans around super reform passed through both houses of parliament at the end of November.<\/p>\n
With new regulations set to become part of Australian superannuation law, some of the rules around super contributions and the tax breaks available will change from 1 July 2017.<\/strong><\/p>\n See what the changes could mean for you and what opportunities you could take advantage of before the end of financial year.<\/p>\n What\u2019s changing\u00a0<\/strong><\/p>\n The after-tax super contributions cap will reduce<\/strong><\/p>\n Initially, the government planned to introduce a $500,000 lifetime cap on after-tax (non-concessional) super contributions, which it will no longer be implementing.<\/p>\n Instead, an annual after-tax contributions cap of $100,000 will be put in place, replacing the current cap of $180,000. Those under age 65 will still have the ability to bring forward three years\u2019 worth of after-tax super contributions, with a maximum of $300,000 under the bring-forward rules.<\/p>\n The before-tax super contributions cap will be lowered<\/strong><\/p>\n The before-tax (concessional) contributions cap will decrease from $30,000 (or $35,000 if you’re turning 50 years of age or older this financial year) to $25,000 per year for everyone, irrespective of age.<\/p>\n A pension transfer cap of $1.6m will be introduced<\/strong><\/p>\n If you\u2019re converting your super into a pension to derive an income in retirement you\u2019ll be restricted to a limit of $1.6 million in your tax-free\u00a0pension account, not including subsequent earnings.<\/p>\n If you already have a balance above that, the excess will need to be placed back into the super accumulation phase, where earnings will be taxed at the concessional rate of 15%, or taken out of super completely.<\/p>\n Transition to retirement pensions will lose their tax exemption<\/strong><\/p>\n Investment earnings on super fund assets that support a pension are currently tax free. However, this will no longer apply to transition to retirement (TTR) income streams.<\/p>\n Earnings on fund assets supporting a TTR income stream will be subject to the same maximum 15% tax rate that applies to accumulation funds.<\/p>\n Super opportunities this financial year<\/strong><\/p>\n Who to contact<\/strong><\/p>\n To find out how reforms to the superannuation system could affect you, please contact your QP partner who will be able to assist.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" See what you should be aware of and what the new laws could mean for your future goals. The government\u2019s May 2016 Federal Budget proposals and several subsequent modifications to its plans around super reform passed through both houses of parliament at the end of November. With new regulations set to become part of Australian…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-13973","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n\n