Nicholas Kohler Director

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April 2017

Newsletter; Superannuation contribution changes from 1 July – review your current arrangements now

 

Superannuation contribution changes from 1 July – review your current arrangements now

The concessional contribution limits will be reduced to $25,000 for all individuals (currently $30,000 if under 50 or $35,000 if 50 and over).

The “10% test” will be removed to allow all employees to make personal concessional superannuation contributions.  This means that employees will be able to make their own contributions rather than having to salary sacrifice through their employer.

The Division 293 (additional 15% superannuation tax for higher income earners) income threshold will be reduced from $300,000 to $250,000.

The non-concessional contribution limits will be reduced to $100,000 (from $180,000).  There is an opportunity to contribute up to $540,000 until 30 June 2017 if you are under 65.

Superannuation fund taxation changes from 1 July

A limit of $1.6m will apply to account-based pensions (where earnings are taxed at 0%).  The excess balance above this amount will have the earnings taxed at 15%.

Earnings on investments held in transition to retirement income streams will be taxed at 15% (currently taxed at 0%), irrespective of when the income stream commenced.

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