Looking forward, not backwards with Super

The biggest news in super this past week: the retrospective $500K lifetime non-concessional cap will be dropped. No need to dust off your records back to 2007!

The Government has announced it’ll back away or modify some of the proposed changes to superannuation announced back in this year’s Federal Budget. Thanks to a slim majority in parliament, the Government negotiated with Labor to redesign changes to contributions.

Between May’s Budget announcements and this month’s changes, what’s expected to pass into law when Parliament resumes?

From 1 July 2017:

  • $1.6m cap on tax-free pension accounts (no changes here, a huge shift in the playing field)
  • No more tax-free pension treatment for Transition-to-Retirement pensions (another major game-changer)
  • Non-concessional (non-deductible) contributions cap reduced to $100K, and only for those with <$1.6m in super already
  • Concessional (deductible) contributions cap reduced to $25K
  • All individuals can claim deductions for super contributions, whether employed or self-employed
  • Plus a range of other smaller measures

 

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What does this mean for you? Contact Maxim to discuss the tax impact for your super or Maxim Private Clients for in-depth superannuation planning.

Article by Courtney Dolan, Client Manager, Maxim Accounting

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