SUPER UPDATE

MAY 2017

From 1/7/17

• Concessional cap reduces from $30,000 ($35,000 if >49 years of age) to $25,000 for all taxpayers
• Reduce annual non concessional contributions to $100,000
• Results in a 3 year bring forward contribution cap of $300,000
• Any member with a member balance > $1.6M will be unable to make further non-concessional contributions
• Tax exempt status of TRIS pension streams will cease
• 10% rule to be removed
• Pensions to be limited to a $1.6M transfer cap
• Excess over $1.6M will be held in accumulation phase and income will be taxed at 15%
• Death benefit pension cannot be commuted back to accumulation phase
• A death benefit > the recipients cap will need to be cashed
• Member can only have one pension cap
• Asset segregation will be removed (if one member has a balance of > $1.6M and receives a pension)
• CGT relief is available (1/7/17) but if elected will be irreversible and is conditional
• If a members adjusted taxable income is in excess of $250,000 (reduced from $300,000) then their concessional contributions will be subject to the Div 293 tax of an additional 15%.

  Year Ended 30 June 2017 - last year of the old rules

• Concessional cap is $30,000 and $35,000 if aged >49
• Non concessional cap is $180,000 and 3 year bring forward cap is $540,000
• Note: if you do not use the full 3 year bring forward cap special grandfathering rules apply for the next 2 years after 30 June 2016

  CONSIDERATIONS (prior to 30 June 2017)

• Consider a 2017 super strategy
• Comply with $1.6M pension cap
• Consider the CGT relief issues
• Post 1/7/17 implications
• Removing the assets supporting a TRIS
• Review super death benefits
• Lower contribution cap issues
  • Concessional $25,000 pa
  • Non concessional $100,000ps or $300,000 3 year carry forward rule