As we gear up to embrace the 2017/18 financial year and navigate the upcoming super reforms, it’s crucial to highlight the key aspects accountants in Sydney need to anticipate. Let’s take a closer look at what lies ahead:
- Notify your employer to reduce salary sacrifice amounts to stay within the $25,000 cap for everyone
- this is even more important if you are contributing to more than one fund and/or your employer is paying your insurance premiums
- Personal super deductions of up to $25,000 will be available to everyone
- the 10% test will be removed
- documentation must still be completed in writing and lodged on time to ensure you are eligible to claim the deduction
- Before making Non-Concessional Contributions, you need to check total super balances and not just within your SMSF to ensure:
- you don’t exceed the $1.6m transfer balance cap and/or
- you are within your 2018 contribution caps whilst taking into account your contribution history
- If you have existing Account Based or Transition to Retirement Pensions (“TTRs”) over $1.6m and have not made the irrevocable election by 30 June 2017 to commute the excess back to accumulation to or below this limit, penalties may apply.
- Removal of tax exemption for TTRs
- Investment earnings on assets supporting TTRs will now be taxed up to 15%
- It is more important than ever to notify your administrator about changes in your personal circumstances, e.g. change in jobs, retirement as this can impact your access to your super and eligibility to make contributions
- If CGT Relief is available, then the fund’s 2017 income tax return must be lodged on time
If you have any queries concerning what changes from 1 July, don’t hesitate to contact us.
Kreston Stanley Williamson Team
*Correct as of June 2017
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.