Rowe Partners | Business Accounting for city & country

Rowe Partners | Business Accounting for City and Country

News & Blog

Home / News & Blog / Articles / Government delivers significant changes to superannuation in its 2016-17 Federal Budget

Government delivers significant changes to superannuation in its 2016-17 Federal Budget

May 27, 2016

A reduction in concessional contribution caps, the lowering of the Division 293 tax threshold, capping tax-free assets in retirement and a lifetime limit for non-concessional contributions are just some of the changes that were in the Budget announcements this year to impact superannuation.  These changes may impact your SMSF and retirement planning and require you to reassess your existing strategies or contemplate new ones.

The key changes proposed for superannuation:

  1. Introducing a lifetime cap for non-concessional contributions
  2. Lowering the concessional contribution cap to $25,000 for all individuals
  3. Lowering the threshold of Division 293 tax
  4. Introducing a $1.6 million superannuation transfer balance cap
  5. Removing the tax-free treatment of assets supporting transition to retirement income streams

There are a number of other proposed superannuation changes that may affect you from 1 July 2017.  These changes are:

  • Allowing catch-up concessional contributions — people who have balances under $500,000 will be able to carry forward any unused concessional contributions caps on a rolling 5 year basis.
  • Tax deductions for personal superannuation contributions — all Australians under the age of 75 will be able to claim an income tax deduction for personal contributions made to their superannuation funds.  Currently, this type of deductible contribution is generally available only to self-employed people.
  • Harmonising contribution rules for those aged 65 to 74 — people will no longer have to meet the work test before making concessional and non-concessional contributions to their super fund if they are aged from 65 to 74 (including making contributions for a spouse aged under 75).
  • Improving superannuation balances of low income spouses — the eligibility rules for low income spouse superannuation tax offset will be extended by raising the threshold from $10,800 to $37,000.

For more detailed information please download the attachment below

Click here to read
Rowe Partners Connect
newsletters

Categories

Recent Posts

Contact

Port Augusta
8 Church Street
Port Augusta SA 5700
P: 08 8641 9300
F: 08 8641 9301
Modbury
4 Smart Road
Modbury SA 5092
P: 08 8397 0000
Port Pirie
33 Florence Street
Port Pirie SA 5540
P: 08 8638 2500
F: 08 8638 2501
Murray Bridge
Murrundi Bldg, Seventh St
Murray Bridge SA 5253
P: 08 8532 2903
F: 08 8396 1081
North Adelaide
Ground Floor, 133 Archer Street
North Adelaide SA 5006
P: 08 8219 0700
F: 08 8219 0701
Rowe Partners Business Accounting for City and Country Since 1989, Rowe Partners have been at the forefront of the accounting market, providing accounting, business support services and financial advice. We maintain a strong focus on continuous improvement and achieving the highest levels of compliance and industry benchmarking. With our qualified and experienced team you are assured of confidentiality, excellent advice and timely delivery of the solution you need.