Budget Superannuation Summary

Superannuation Superannuation ‘work test’ watered down & age limit for spouse contributions increased Date of effect 1 July 2020   As previously announced, from 1 July 2020, Australians aged 65 and 66 will be able to make voluntary superannuation contributions (concessional $25,000 p.a. and non-concessional $100,000 p.a.) without meeting the Work Test. Currently, voluntary contributions…

Other reasons to access super

First home buyers The First Home Super Saver Scheme (FHSS) enables first-home buyers to save for a deposit inside their superannuation account, attracting the tax incentives and some of the earnings benefits of superannuation. Home savers can make voluntary concessional contributions (for example by salary sacrificing) or non-concessional contributions (voluntary after-tax contributions) of $15,000 a year within…

Non-Concessional Contributions (no tax deduction)

1 July super changes

What’s changing on 1 July 2018? Superannuation Event-based reporting for SMSFs – A new reporting regime commences for SMSFs. All SMSFs must report events that affect their members’ transfer balance accounts (for example, when an SMSF member first starts to receive a pension from their fund). Timeframes for reporting are determined by the total superannuation balances of the SMSF’s…

Non-Concessional Contributions (no tax deduction)

Non-Concessional Contributions (no tax deduction)

New non-concessional annual contribution cap rules The new non-concessional annual contribution cap rules broadly sees the current system of non-concessional contributions continuing however with lower caps provided your superannuation account balance is less than $1.6m as follows: Up to 30 June 2017: $180,000 (for individuals <65 – eligible for 3 year bring forward rule) From…

$1.6m Pension Cap (Transfer Balance Cap)

$1.6m Pension Cap (Transfer Balance Cap)

There will be a $1.6m cap on the amount of capital that a person can transfer into retirement products such as superannuation, pensions and annuities. The transfer balance cap applies from 1 July 2017 and applies to both existing and new pensions. The cap is an individual cap and applies on an individual-by-individual basis taking…