No doubt you would have heard over the last few months that Superannuation legislation changes have been passed in Parliament.
These changes will come into effect from 1st July 2017 so it is important to consider if you are affected.
If you fit into one of the following categories it is important that you review the changes prior to the 30th June to ensure that you are not affected by the legislation:
1. You currently salary sacrifice contributions to Superannuation. You should review that you are not going to breach the new caps.
2. If your taxable income is over $250,000 you need to take into consideration the additional tax payable on your superannuation contributions.
3. If your superannuation balance is under $500,000 there are options to make additional contributions and you should review this in relation to your personal cashflow and financial plans.
4. If you Superannuation balance is over $1,200,000 and you are considering contributing more to Superannuation, you should review this strategy now to ensure you can maximise your contributions.
5. If you are planning to make after tax contributions to superannuation you should review your plans now as the limits on contributions are changing.
6. If you have greater than $1,600,000 in pension phase in Superannuation you need to ensure that you are under this cap by the 1st July.
7. If you spouse earns under $40,000 per year it may be beneficial to look at the spouse tax offset for contributions made by you for your spouse.
8. If you have a transition to retirement pension or have been considering a transition to retirement pension this should be reviewed as these pensions will now be taxed at 15%.
9. If you and your spouse have over $1,600,000 combined in superannuation you should review your estate planning strategy as this may be affected by the changes.
Over the next few months we will include a monthly case study on the various changes to help you understand how these changes may affect your personal situation.
If any of the above affect you and you need assistance or you have any questions on the changes please feel free to contact Melanie or Renee.
General Advice Warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.