It has been a few weeks since budget night, giving everyone a chance to digest the information and work out what needs to be done before 30 June – especially given the significant (proposed) changes to super.
The good news is not much needs to be done right now.
This is mostly because the government still has to win an election, and then get the budget through parliament, before any of the announcements come into effect. Fortunately, we should know by August/September when parliament next sits.
The most significant (and unexpected) super announcement was the introduction of the $500,000 lifetime cap on non-concessional (after tax) contributions. If passed, this proposal will come into effect from budget night, therefore it is extremely important to think carefully before making any non-concessional contributions. If you had planned to make a non-concessional contribution prior to 30 June please give us a call before doing anything so we can discuss your situation in more detail.
Most of the other proposed superannuation changes are scheduled to commence on 1 July 2017, meaning we have time to see what happens on July 2 - and in the subsequent sitting of parliament -before any steps need to be taken.
So what do you need to do prior to 30 June?
- Ensure you take your minimum pension this year (if you haven’t already)
- Make any concessional (tax deductible) contributions you had planned to make prior to 30 June.
We will be sending out our end of year checklists with further details shorty – so keep an eye out in your inbox for that.