Superannuation Changes 1st July 2017
Superannuation Changes and what it means to you!
In the coming months, we will see some big changes to Australia’s Superannuation Rules.
Did you know that from 1st July 2017:-
- If you are under 75 years old, you are eligible to make tax deductible super contributions at any time rather than resorting to salary sacrifice;
- Before-tax contributions will reduce to $25,000 and after-tax contributions will reduce from $180,000 to $100,000 per year;
- Individuals will have a limit of $1.6 million held in a super pension account which is tax free. Anything over this amount needs to be invested in a taxed superannuation fund;
- Tax-free investment earnings will no longer be beneficial with transition to retirement pensions;
- If your spouse earns less than $40,000 per annum and you make super contributions to your partner’s superfund, you are entitled to claim the $540 low Income Spouse Contribution Tax Offset.
Now is the time to start reviewing your Superannuation and assess how these changes will affect you.
Here are some ideas on what to look into before these changes come into effect:-
- Planned Asset Sales are a good way to increase your Superannuation prior to the new financial year;
- Think about increasing your salary sacrifice prior to the lower caps start for pre-tax contributions;
- Take advantage of after-tax contributions capped at $540,000 now, before it decreases to $300,000 in the new financial year
Now would be a great time to consider your ability to contribute to your Superannuation before the end of this financial year and prior to the changes effective from 1st July 2017.
For more detail on these changes click here.
As always, please contact A Grade Tax Penrith for any tax advice specific to your circumstances before making any changes.
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