financial planning & lending specialists 03 9686 4976

The countdown is on...  

It's your last chance to boost your super balance before the reforms announced in last year's Federal Budget come into effect on 1 July '17. Below are the main changes, and what we can do to ensure you're not negatively impacted by the new limits:  


Your super is your future. 

With changes due to start taking effect soon, please call us on 03 9686 4976 to discuss your financial strategy and retirement plans so we can determine your course of action for future financial years.

YOU NEED TO TALK TO US IF:

  • Your income is over or close to $250K per annum.
  • You currently salary sacrifice to boost your super.
  • You currently have a TTR strategy.
  • You're getting close to retiring. 
  • You and/or your spouse have close to, or over $1.6M worth of assets in super. 
  • You have savings, or you're expecting a lump sum of cash in the future, e.g sale proceeds from an investment property, inheritance, insurance payout etc.

 

MAKE EXTRA PRE-TAX CONTRIBUTIONS & ADJUST SALARY SACRIFICE ARRANGEMENTS 

If you currently salary sacrifice you may be affected by the reduced $25K cap for "Concessional Contributions" (super contributions made by your employer plus any voluntary contributions from your pre-tax earnings). 

  Consider contributing up to the higher cap of $30K p.a for those under 50 years old, or $35K p.a for those over 50 before 30 June. 

  Ensure your pre-tax contributions will be below $25K for future financial years.

 

MAKE EXTRA POST-TAX CONTRIBUTIONS & PLAN FOR FUTURE LARGE DEPOSITS

The limit for "non-concessional contributions" (super contributions you make after income tax) is about to reduce dramatically to $300K over a three year period. You only have until 30 June '17 to tip in up to $180K for this financial year, or to take advantage of the current "bring-forward" rule which allows up to three years' worth of contributions totalling $540,000 to be made

 Boost your super by contributing a lump sum of savings before 30 June.

 Review your strategy for future personal contributions

 

REDUCE YOUR RETIREMENT PHASE BALANCE

There is currently no limit to the total amount of super you can transfer into tax-free retirement income streams, but this is about to change to $1.6M. The new cap will also apply to current retirement phase balances as at 30 June '17. 

 Compare strategies to reduce your balance including taking out a lump sum, transferring back to accumulation phase or transferring to your spouse before 30 June '17

 

ASSESS THE IMPACT OF PRE RETIREE TAX

Transition To Retirement strategies used to be the be-all and end-all. When the government removes the tax-exempt status from 1 July '17, this will no longer be the case.

 Will your TTR still be a valuable strategy? Review now to ensure it's still the right option for you.

 

PROTECT WHAT'S LEFT FOR LOVED ONES

Changes to your super and retirement strategy have a knock-on effect on your estate planning.  

 Always review your Will and death benefit nominations after amending your financial plan.