The new superannuation legislation is now in force and we suggest you take a look at the following in conjunction with the preparation of your 2017 Financials and Income Tax Return:
1. We suggest you prepare your 2017 financials and income tax returns earlier this year. The new legislation is highly dependent on a member’s balance at 30 June 2017.
2. If you have an account based pension above $1.6 million or a Transition to Retirement income stream (TRIS) you should consider which assets you would like to reset the cost base for. This needs to be done via an irrevocable election. The election must be made before you are required to lodge your tax return, for most self managed super funds this is 15 May 2018.
3. Trustees should ensure they have obtained market valuations for all assets at 30 June 2017. These are especially important if you are above or close to the $1.6 million Transfer Balance Cap.
4. Review any salary sacrifice arrangements with your employer as the Concessional contributions cap has reduced to $25,000 for everyone.
5. Removal of 10% test – the 10% test restricted employees from claiming a tax deduction in their personal income tax return. This has now been removed. This now gives you the ability to claim a tax deduction in your personal tax return rather than salary sacrifice this amount.
6. If you are currently receiving a transition to retirement income stream (TRIS) you may wish to turn this income stream off. Earnings on Transition to retirement income streams are no longer tax free.
7. Non Concessional (after tax) contributions limit has reduced to $100,000. The ability to make these contributions has been prohibited for members with a total superannuation balance above $1.6 million. If you are under 65 access is also restricted to the bring forward per the below table:
|Total Superannuation balance on 30 June 2017||Maximum non-concessional contributions cap for the first year||Bring-forward period|
|Less than $1.4 million||$300,000||3 Years|
|$1.4 million to less than $1.5 million||$200,000||2 years|
|$1.5 million to less than $1.6 million||$100,000||No bring forward period|
If you have any queries or need help with any of the below please contact our office.