Super is Changing 01 July 2017
On 1 July 2017 big changes are coming to super. It’s important to understand what the new rules are and how they will affect you.
What is changing?
In November 2016 the Federal Government passed into law superannuation reforms first announced in the May 2016 Federal Budget, that take effect on the first of July 2017. These include:
- Lower concessional contributions cap (contributions you can make to super with your before-tax salary)
- Lower non-concessional contributions cap (contributions you make to super with your after-tax dollars)
- People with a super balance of more than $1.6 million will not be able to make any non-concessional contributions.
Investment earnings in transition to retirement pensions will be taxed at up to 15% (up from nil tax).
There are rules that allow you to ‘bring forward’ your contribution caps but its complex and there may be penalties if you don’t get it right. To read more in detail about the changes see the attached Fact Sheet and Infographic.
Act now – see a Bridges Financial Planner
Northern Inland Credit Union Members are entitled to a complimentary no-obligation consultation with a Bridges Financial Planner. With the Superannuation changes coming, I believe there is no better time to utilise this free appointment with Grant Fisher at Bridges, so that he can discuss the new rules and together you can determine how they will affect you and your retirement planning.
Phone us on 1300 65 65 81 or visit us in branch, so we can make you an appointment.