|
|
Super Reform Bill passed
Just recently the Senate passed the key Bill which gives effect to the much discussed superannuation reforms. Summary of measures The Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 contains the measures originally announced in the 2016/17 Federal Budget with subsequent amendments. The Bill was passed as introduced to Parliament without any changes. The majority of measures commence from 1 July 2017. The key measures include:
-
Introducing a $1.6 million transfer balance cap which limits the amount that can be transferred to the retirement phase, where earnings are tax-free. This measure will also apply to death benefit income streams. -
Reducing the concessional contributions cap to $25,000 for all taxpayers. -
Introducing a concessional contributions catch-up regime for those with total super balances of less than $500,000 from 1 July 2018. -
Allowing a deduction for personal contributions without testing the proportion of employment income received (the 10% test). -
Reducing the non-concessional contribution cap to $100,000 pa (or $300,000 under the bring forward provisions), limiting the ability to make NCCs to people who have a total superannuation balance of less than $1.6 million and introducing transitional rules for those who triggered the bring forward rule prior to 1 July 2017. -
Introducing a low income superannuation tax offset to replace the low income superannuation contribution (which will be abolished from 1 July 2017). -
Increasing the annual income threshold from $10,800 to $37,000 for eligibility for the spouse contribution tax offset. -
Abolishing the anti-detriment payment. -
Removing tax exempt earnings for transition to retirement income streams.
-
Lowering the income threshold for Division 293 tax to $250,000.
Next steps The Bill will now need to receive Royal Assent before it is formally law. This is generally accepted to be a mere formality and we will be reviewing how these changes impact you over the next few months.
In this months newsletter we include the November market update along with a few travel tips, some information on Testamentary Trusts and some considerations if you plan on giving some money to your kids.
As always, please call or email me if you would like to discuss anything.
Enjoy planning for Christmas which is just around the corner!
Regards,
Charmaine
|
|
|
|
|
|
|
|
| |
In this update, Bob Cunneen, Senior Economist and Portfolio Specialist, reviews events in markets during October.
He discusses:
-
the softer performance of global shares
-
how the prospect for higher US interest rates and a close Presidential election caused US shares to fall, and
-
how our inflation rate picked up speed, casting doubt on further RBA interest rate cuts and adversely impacting Australian shares.
Find out more:
|
| |
Retirement is the perfect time to get out and see more of Australia, from the tropical north to the wilderness of the south and the red earth in between. Here are 11 amazing places in Australia to visit when you retire, or for enjoying a mini-retirement.
Read full article >>
|
| |
Testamentary Trusts can save your family thousands in tax each and every year though income splitting opportunities and also provide a level of asset protection to benefit future generations.
It is for these reasons that Wills with Testamentary Trusts are recommended by many lawyers, accountants and financial advisors as an essential part of a properly considered and implemented estate plan.
Read full article >>
|
| |
Are you planning on giving money to your kids? Have you considered what would happen to that money if your son or daughter either: broke up with their partner, got into financial strife; or if the unexpected occurred?
Read full article >>
|
|
|
|
|
|