As expected, a number of key superannuation changes were announced in this year’s Federal Budget.
Unsurprisingly, superannuation has yet again been used as a pot of money to solve some of the budget issues. The Budget papers show the Government has wound back $4.5 billion in super tax concessions, with only $1.5 billion being re-invested back into the super system and not all of this will flow to lower income earners.
Snapshot of super changes
- New $1.6 million cap on benefits you can transfer into retirement phase
- New concessional contribution cap of $25,000 for all
- Lowering of the high income earner additional 15% contributions tax threshold to $250,000
- New lifetime non-concessional cap of $500,000
- More people able to claim super tax deduction on voluntary contributions
You can download our fact sheet which outlines all the key changes.
The fact sheet also contains links to consumer fact sheets released by the Government covering each area.
The proposed changes have different starting dates; some are effective immediately with some retrospectively while most are scheduled to commence 1 July 2017.
Please remember we are here to help. If you are concerned about the changes, we encourage you to speak to a Vision Super Financial Planner.
For assistance please contact Vision Super on 1300 300 820.