The budget is fast approaching and although the Liberals have remained tight lipped on their proposals a few possible changes have slipped through the cracks. With the release date being brought forward to 3 May 2016, Super Initiatives urges clients to take action beforehand.
- Contribution caps may be reduced
- Tax on concessional contributions for high income earners may increase (currently 30% for those with Taxable Income over $300,000)
- Transition to retirement rule changes making people reduce their working hours to receive a TTR
- Tax on earnings above a threshold when in pension phase
To ensure you are maximising your super fund’s tax saving potential remember to:
- Make all contributions before 30 June 2016 (preferably before budget night, in case the rules change)
- Withdraw at least the minimum pension amount prior to 30 June 2016
If you have a SMSF, we ask you to consider having us review your 2016 contributions and pension withdrawals prior to 30 June 2016 to ensure you do not exceed your caps and incur an unnecessary tax bill.
For more information, please contact: