Government passes superannuation changes
24 November 2016
Yesterday, Federal Parliament voted to accept the package of superannuation changes, a slightly watered down version of the proposed changes announced in the May budget.
The Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 was passed by both houses of Parliament and will shortly be considered for Royal Assent.
This Bill includes the reforms to the superannuation system proposed in the May 2016 Federal budget as well as the changes to non concessional contributions caps announced in September 2016. Measures covered by this Bill include:
- Reducing the concessional contributions cap to $25,000 from 1 July 2017 and introducing the ability to carry forward up to five years' of unused concessional contributions from 1 July 2018.
- Reducing the non-concessional contributions cap to $100,000 from 1 July 2017, and removing the ability for persons with more than $1.6 million in superannuation from making any further non-concessional contributions.
- Introducing the $1.6 million transfer balance cap regime from 1 July 2017.
- Removing the earnings exemption for assets backing Transition to Retirement Pensions, such that these will be taxed as accumulation accounts from 1 July 2017.
- Removal of the anti-detriment payment from 1 July 2017.
Rest assured our team have their finger on the pulse so once the Bill receives Royal Assent we will provide further correspondence discussing the changes and what these mean to you.
In the interim, if you have any questions or concerns, please contact your local Boyce accountant.
Source: IOOF Tech Connect