Time to review your super
How will the new superannuation measures, which kick in from July 1 this year, impact you?
Of the 11 changes being introduced, the following are three of the major reforms that may have an impact on the way you manage your contributions going forward.
1. Concession Caps
The annual contribution concession cap has been reduced to $25,000 (previously $30,000 for under 49s, and $35,000 for others). Now is the time to maximise your contributions ahead of the June 30 deadline.
2. Non-concession cap contribution reduction
The annual non-concessional contribution cap will be reduced from $180,000 to $100,000 after June 30. There’s still time to maximise your contributions – or consider spouse splitting where applicable– before the start of the new financial year.
3. $1.6-million balance transfer cap
The new measures see the introduction of a balance transfer cap which limits the amount you can transfer to your retirement phase (when earnings are tax-free) to $1.6-million. Anything above the cap will form an accumulation amount being taxed on earnings at 15%.
No one strategy works for everyone when tackling this new measure but our Private Wealth team at Matthews Steer can review your individual circumstances and provide strategies for reducing or redistributing your super balance below the $1.6-million cap.
If you are currently making super contributions, it is vital that you understand these – and all the superannuation reforms being introduced - before June 30 this year, and have a plan for your superannuation as we head into the new financial year on July 1.
To help you, we’ve set up a 60-second ‘Super X-Ray’ that will enable you to determine how you are affected by the super reforms and whether you need to take further action. Click here to take our Super X-Ray survey.
For an in-depth review of your superannuation contact the Matthews Steer Private Wealth team on (03) 9325 6300.