What’s happening in the Superannuation Space


superannuation updatenest egg - superannuation WHATS NEW?

The new Limited Recourse Borrowing Arrangement rules should now be well and truly bedded down and we now head steadily toward the next raft of changes.

The most pressing for our SMSF clients is the $1.6million transfer balance cap for retirement pensions.  There are a number of strategies around this change.  However, with the new and very complicated rules we will have to address these via statement of advice.  It’s also important for accumulators to be aware of this rule as there are also strategies available to make the most of it for your future plans.

  • Removal of the tax exemption for transition to retirement pensions (TRIPS) – this will most likely see a reduction in the number of individuals currently in this space.
  • Cut in annual concessional contributions cap – and into the future (from July 2018) the ability to access the 5 year rule around this cap.
  • Seriously complicated rules for non concessional contributions which also highlight the current opportunities available to you before 30th June 2017.
    Spouse Super Contributions tax offset limit increases.
  • Tax hike for more Australians – the lowering of the income threshold that sees some paying 30% and not 15% on contributions.
  • The removal of the 10% rule making it easier to make contributions against income derived from sources other than employer income.
  • Removal of the option to treat a pension payment as a lump sum payment, for individual tax purposes.
  • Removal of anti detriment provisions.

Optima Partners is currently on top of these changes and can offer assistance.  Factual information can be offered without a statement of advice being offered but more specific advice will require that one be issued.

Now more than ever it’s important to “dial before you dig” in other words ask for advice before jumping into any superannuation transaction involving pensions and contributions, failing the new rules will lead to pain.

Liz Gibbs







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