How will the new changes to superannuation affect you?

            Superannuation is your means to live comfortably when you choose to stop working. Many changes will soon be made to superannuation in Australia, having a significant impact on all super holders, both young and old. It’s important to consider how these changes will impact upon your super, and if you need to change your current super arrangements. Below are some of the changes, and the opportunities they can provide for you. Introduction of a transfer balance cap A $1.6 million cap has been introduced on the amount that can be transferred to super in retirement phase when earnings are tax-free. Additional savings can remain in an accumulation account (where earnings are taxed at 15 per cent) or remain outside super, coming into effect from 1 July 2017 and indexed in following years. Retired people with retirement phase balances below $1.7 million on 30 June 2017 will have 6 months from 1 July 2017 to bring their balances under $1.6 million. Concessional superannuation contributions cap reduced The annual concessional contributions cap has been reduced to $25,000 (from $30,000 for those aged under 49 at the end of the previous financial year and $35,000 otherwise). Comes into effect from 1 July 2017. Concessional superannuation contributions tax threshold reduced The threshold at which high-income earners pay Division 293 tax on their concessionally taxed contributions to superannuation has been reduced from $300,000 to $250,000. Comes into effect from 1 July 2017. Non-concessional contributions cap reduced and criteria introduced Non-concessional contributions rules have been made, and come into effect from 1 July. The annual non-concessional contributions cap has...