Significant changes to superannuation come into force on July 1, 2017. However, there is a rapidly closing window during which self-managed super fund (SMSF) members can take advantage of current rules to boost their retirement savings and reduce their total tax payments.

There are also some things trustees may need to prepare for, so here’s a ‘last chance’ checklist of issues you may need to address:

• The non-concessional contributions (NCC) cap will drop from $180,000 pa to $100,000 pa. Under the 3-year bring forward rule, you may be able to contribute up to $540,000 to super prior to July 1. However, if you have plans to retire soon, this needs to be considered in light of the new $1.6 million transfer balance cap and don’t forget that if your total superannuation balance is around or in excess of $1.6 million you may be limited to what you can contribute, if anything at all
• Over 48? Now is your last chance to take advantage of the $35,000 concessional contributions cap before it drops to $25,000 pa. Under 49? Your concessional contributions cap is $30,000 for this financial year, so there’s still a benefit to be gained from making concessional contributions up to this limit
• If you have a transition to retirement (TRIS) income stream and you wish to withdraw any unrestricted non-preserved benefits, you need to act before June 30
• Ensure that you will meet your minimum pension payments for the current financial year
• TRIS pensions and pension benefits in excess of the $1.6 million transfer balance cap that are rolled back into accumulation phase will lose their tax exempt status. If possible, bring income forward to the current year when it will be tax free, and defer expenses until the new financial year to increase future deductions
• Make your non-concessional contributions prior to June 30. Remember, low-income earners may be eligible for a government co-contribution of up to $500
• Ensure you have identified all your superannuation interests. This is particularly important if you have more than $1.6 million in the pension phase
• If you do exceed the $1.6 transfer balance cap should the excess stay in super or be withdrawn and invested personally? A key consideration is the level of non-super income you receive and your marginal tax rate on that income.

Need help?

The forthcoming changes to superannuation give SMSF trustees more to think about than usual.

The costs of getting things wrong may be substantial, not so much in terms of penalties but more in terms of lost opportunities, so don’t miss out.

To make sure you super strategy is in tip-top shape, give us a call on (03) 9875 2900 or fill in the contact form below.