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From 1 July 2017, a range of changes to super will take effect. It’s important to know about the changes because you may have to review your financial plans and strategies. If you need advice, our MyLife MyAdvice financial planners can help you.
- All pre-tax contributions will be capped at $25,000 regardless of age.
- Anyone will be able to claim a tax deduction on post-tax contributions as an alternative to salary-sacrificing.
- All after-tax contributions will be capped at $100,000 per year. If you are under the age of 65, you will be able to bring forward three years of contributions in the one year.
- If you are over the age of 65 and meet the work test, you can contribute up to $100,000 per annum.
- If you already have more than $1.6 million in superannuation, you will no longer be able to make after-tax contributions.
First Home Super Saver Scheme
To reduce pressure on housing affordability the Government will allow voluntary superannuation contributions to be withdrawn for a first home deposit. It's important to note that at the time of publication (7 June 2017), this proposed measure is not yet law and may be subject to change.
- From 1 July 2017, individuals can make up to $30,000 of voluntary contributions (limited up to $15,000 per year) to superannuation for the purposes of this measure. Voluntary contributions can be made before or after tax and are subject to the relevant contribution caps.
- From 1 July 2018, those voluntary contributions (along with deemed earnings) can be withdrawn for a first home deposit.
- Withdrawals will be taxed up to an individual’s marginal rate, less a 30% offset. Withdrawals of after-tax contributions will not be taxed.
From 1 July 2017, Pre-Retirement Pension investment earnings will now be taxed at a maximum of 15%.
You can read the Significant Event Notice impacting Pre-Retirement Pensions here.
The amount you can invest in pension accounts will be capped at $1.6 million. This amount applies to all pension accounts you may have in place (e.g. annuities, lifetime pensions or self-managed super funds).
If you have already retired and your balance exceeds the cap, you will be required to either:
- Move the excess back to a super account, or
- Withdraw the amount as a lump sum, or
- Have a tax penalty applied.
Contact a financial planner for advice about what's best for your financial situation or needs.
If you have any questions or need some advice, we are always happy to help. Contact us on 1300 963 720 or email firstname.lastname@example.org.
MyLife MyPension has been named Best Pension Fund Manager at the Money Magazine Awards 2017 held on 30 November.
MyLife MyPension was compared with over 175 other pension funds and has come out on top. Our strong investment results and low fees have resulted in the Balanced option returning 7.1% over a 10 year period, well above the industry average of 5.7%.
CEO Frank Pegan, said he is thrilled that MyLife MyPension has won the gold award. “MyLife MyPension’s success is more than its consistent and exceptional investment performance. It’s also due to the care and personal attention our members receive from a service team that is supported by skilled advisers and super specialists, all of whom work together to give our members financial peace of mind throughout their retirement.”
This award builds on the industry recognition Catholic Super has received as we have grown and developed. Our involvement in the Catholic community for over 45 years especial within the education with a philosophy built on humility and compassion. As a quiet achiever, it focuses on returns for its members, low fees, flexible products and personalised service.