CIB Newsflash – Superannuation Changes Passes Parliament

You have probably seen or read in the news over the last 6 months the Government’s proposed changes to the superannuation laws and landscape.

The superannuation bills covering the final determined changes have just been passed by both houses of parliament.

The bills will most likely receive royal assent very soon and a majority of the changes will come into effect from 1 July 2017.

Key changes

  • $1.6 million cap on the initial amount transferred into the tax-free pension phase
  • Reduction to the annual concessional (Employer) contribution cap to $25,000.00
  • Reduction to the annual non-concessional () contribution cap to $100,000.00
  • Reduction of the income threshold to $250,000.00 at which additional tax (Division 293 tax) is required to be paid on
  • concessional employer contributions.
  • Transitional capital gains tax relief for superannuation funds
  • Catch up concessional contributions for those with balances below $500,000.00
  • Removal of the tax free status of earnings made on Transition to Retirement Pensions
  • Introduction of tax offset for low income earners contributing to superannuation
  • Removal of restrictions on making deductible personal contributions
  • These are significant changes that will be felt by all of our clients differently and will require a detailed analysis of each fund.

We will be conducting these reviews over the coming months and will be in contact with each client as these reviews are completed.

In the interim we will be holding a series of seminars to provide more clarification of these changes.

If you would like any further information please don’t hesitate to call and speak to one of our friendly accountants in the SMSF Team.