Major superannuation changes start July 2017! Are you prepared?

This may be the last year that you contribute non-concessional contributions to superannuation. From 1 July 2017 if you have more than $1.6m in superannuation benefits then you can no longer make any non-concessional superannuation contributions.  The only contributions that can be made on behalf of such members are $25,000 concessional contributions, subject to age restrictions.

If you have not utilised your non-concessional contribution cap you may be able to make up to $540,000 of non-concessional contributions by utilising the 3 year brought forward year. You must do this before 30 June 2017.

An additional change is that if you have more than $1.6m of assets supporting a pension you must either withdraw the excess from superannuation or commute the excess to accumulation phase. This means that the earnings on the amount you commute will be subject to tax at normal superannuation rates.

Proper planning now is essential in order to prepare for compliance with the new superannuation reform rules.

For more information contact terry@sullivandewing.com.au or call 9526 1211.