Super changes receive royal assent
14 December 2016
Changes to the superannuation system announced by the government in the May 2016 Budget that was passed by both houses of Parliament has now received 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.
- Removal of the 10% income test rule for making personal tax deductions for superannuation contributions.
In the coming months, we will be working closely with our clients affected by the changes to identify potential opportunities and strategies prior to 30 June 2017.
If you have any questions, please contact your local Boyce accountant.