Budget to impact superannuation
The 2016-17 budget introduced a number of proposed changes to superannuation which are likely to affect many individuals. These include:
- A $500,000 lifetime non-concessional contributions cap which came into effect from Budget night taking into account all contributions since 1 July 2007.
- A reduction in concessional contribution cap from 1 July 2017 to $25,000 for all individuals.
- The removal of the tax exemption on earnings supporting transition to retirement income streams (TRIS) from 1 July 2017
- The extension of the 30% super contributions tax on high income earners to individuals earnings adjusted taxable income of $250,000
- Tax exempt superannuation pension account balances capped at $1.6m from 1 July 2017
Whilst these changes are not law as yet and many don’t take effect until 1 July 2017 there is much to consider – contact your advisor to discuss further.
To discuss how this may impact your circumstances please contact PPT on (03) 5331 3711.
DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
