Superannuation Rules 2017

New superannuation rules took effect from the 1st July 2017 and will have a substantial effect on your superannuation and retirement plans for 2017/2018 and future years.

Please see the following list of changes to superannuation below:

  • Annual concessional contributions cap reduced to $25,000

  • Expansion of tax-deductible super contributions to all Australians

  • Annual non-concessional contributions cap reduced to $100,000

  • Increase income threshold for spouses superannuation contributions tax offset to $37,000 (and $40,000)

  • Low-Income superannuation tax offset replaces LISC

  • Introduction of a $1.6 million transfer balance cap

  • Removal of tax exemption for transition-to-retirement pensions (TRIPS)

  • Preservation age now at least 57 years

  • Age Pension increases to at least 65.5 years

  • SMSF trustees face bigger penalties from 2017/2018 year

  • Introduction of First Home Super Saver Scheme

  • Removal of option to treat a pension payment as a lump sum payment, for tax purposes

  • Removal of anti-detriment provisions

  • Extension of tax exemption for other types of retirement products

  • Non-super change: Delivery of personal income tax cuts

  • Proposed Introduction of non-financial superannuation changes

For further information and to see if any of these changes may have affected you, contact us today for a consultation with our experienced advisers.