By: Steve Burnham
The changes to the super system, announced by the government in the 2016–17 federal budget, have now been passed by Parliament. Overview of superannuation system changes for SMSFs.
As reflected in the name of the legislation, the Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016, these changes were designed to improve the sustainability and fairness of Australia’s superannuation system. Most of the changes will commence from July 1, 2017.
An ATO overview of each of the changes can be found by clicking on the links below.
The ATO says more detailed information is being progressively published to help SMSF trustees as well as everyday taxpayers understand the changes, how they may affect funds, and what fund members may need to know and do now or in the future as an SMSF trustee.
The ATO advises that interested SMSF trustees can subscribe to super updates by selecting “super” in the subscription choices on its subscription service page to receive an email or RSS feed alert.
Overview of super changes
- Spouse tax offset
- Personal superannuation contributions deduction
- Low income superannuation tax offset
- Introducing a transfer balance cap of $1.6M for pension phase accounts
- Reduction of Division 293 income threshold to $250,000
- Reduction of non-concessional (post-tax) contributions cap to $100,000 per annum
- Reduction of concessional (pre-tax) contributions cap to $25,000 per annum
- Carry-forward concessional contributions of unused caps over five years
- Improve the integrity of retirement income streams
- Removal of anti-detriment payment
- Innovative retirement income stream products
Source: Tax & Super Australia
