- Super reform bills passed by both houses
Key superannuation reform bills have now been passed by both houses of Parliament.
Among them, the most crucial changes include:
- a $1.6 million cap on pension transfer balances
- a reduction of the Division 293 high-income super tax threshold to $250,000
- the Transition to Retirement Income Stream will no longer enjoy the tax-free exemption on earnings and capital gains in the fund
- a $25,000 cap on annual concessional contributions; and
- the reduction of the non-concessional contributions to $100,000 a year
What does this means for you?
As most of the major changes are effective from 1 July 2017, now is an opportune time to review your individual situation with your advisor to ascertain how the above changes may affect you and how best to structure your affairs.