The government announced significant superannuation changes back in May, followed by further changes in September. This month, these changes passed through Parliament and have now become law.
These changes will, by and large, come into effect from 1 July 2017. This means that for a great number of you, there will be various planning issues to consider relating to:
- Concessional contribution caps
- Non concessional contribution caps
- The work test – not going as originally planned
- Limiting the funds allowed in pension mode
- Loss of earnings exemption on Transition to Retirement Pensions
As part of our commitment to be at the forefront of these changes, we propose in the new year to:
- Run an information session (similar to the one we ran after the budget) to provide general information on the changes, as well as provide a copy of the presentation to those who cannot attend. We plan to run this session on Tuesday 24th January 2017
- Contact clients individually to ensure that planning for any necessary changes takes place well in advance with ample time to spare
There appears to be some confusion with regards to the changes so initially some words of note:
- The changes do not necessarily mean you have to take funds out of super
- You can still make non concessional contributions, subject to your past contribution history
In the meantime, I wish you all a great Christmas.
Ian Hogbin
Posted 16.12.16
The information we are providing to you is purely factual in nature and does not take into account all of your personal objectives, situations or needs. The information is objectively ascertainable and, therefore, does not constitute as financial product advice. If you require personal advice you should consult an appropriately licenced person or authorised financial advisor, such as HQB Financial Solutions Pty Ltd.
