As of July 1, the government has taken the following measures in order to make the superannuation system more sustainable and flexible enough to suit modern work patterns.
- New tax threshold for high-income earners is $250,000, leading to 15% tax increase and annual concessional (before-tax) contributions capreduced to $25,000.
- Non-concessional contribution eligibility for bring-forward provisions has been reduced to $100,000 and $300,000. People under 65 age can bring up to 3 years of non-concessional contributions.
- Tax deductions can be claimed by anyone under the age of 65 and those within 65-74 age range who satisfy the work test.
- $1.6 million capons the total amount that can be moved into the tax-free retirement phase, without restrictions on the money earned on that balance during the retirement phase.
- Low-income earners(for individuals earning up to $37,000) will have tax refunds on the concessional contributions up to a cap of $500, sent to their superannuation accounts.
- People with a total superannuation balance of less than $500,000 before the start of a financial year can use any carried forward unused concessional contributions for up to five years.
- People having less than $500,000 superannuation balance before the start of a financial year can use for 5 years and carried forward unused concessional contributions.
- Spouse tax offset for recipient spouses earning up to $40,000.
- More flexibility by extending tax exemptions during retirement phase.
- 15 per cent tax on taxable income from assets aiding retirement income streams with tax-free pension payments for individuals over 60. No more treating of certain superannuation income stream payments as lump sums.
- Abolishing of the anti-detriment rule with lump sum death benefits still being tax-free.
- Choose a qualified expert to guide you through these financial complex changes.