From 1 July 2017 there were substantial changes to superannuation in Australia which may affect your superannuation and retirement plans for the 2017/2018 year, and the impact in future years nay need to be considered?

A summary of the latest superannuation changes, which took effect from the start of the 2017/2018 year, is set out below.

Annual concessional (before-tax) contributions cap reduced to $25,000.

Expansion of tax-deductible super contributions to all Australians.

Annual non-concessional (after-tax) contributions cap reduced to $100,000.

Increase in income threshold for spouse superannuation contributions tax offset to $37,000 (and $40,000)

Low Income Superannuation Tax Offset replaces LISC.

Introduction of the concept Total Superannuation Balance.

Introduction of a $1.6 million transfer balance cap.

Removal of tax exemption for transition-to-retirement pensions (TRIPs).

Superannuation Tax increase for some Australians: 30% tax on concessional (before-tax) super contributions for high income earners.

Preservation age now currently at least 57 years.

Right to receive Age Pension currently increases to at least 65.5 years.

SMSF trustees face bigger penalties (from 2017/2018 year).

Introduction of First Home Super Saver Scheme.

Removal of option to treat a pension payment as a lump sum payment, for tax purposes.

Removal of anti-detriment provisions.

Extension of tax exemption for other types of retirement products.

Non-super change: Delivery of personal income tax cuts for individuals.

Downsizing. As from 1 July 2018 the government has introduced an incentive for over-65s to downsize their homes, and make super contributions up to $300,000, outside the usual non-concessional (after-tax) contributions cap (for more information,.

Age Pension changes. Highly significant change to the retirement plans of Australians with super savings, is the introduction of changes to Age Pension assets test since January 2017. Rather than losing $1.50 for every $1,000 over the full Age Pension threshold as the current test applies, instead, since January 2017 a retiree loses $3.00 for every $1,000 of assets over the full Age Pension threshold.

Please contact us should you require further explanation or assistance.

For a more detailed explanation you can also refer to the ATO website.

Gregory Asher Sernack

FSL License Number 484657

Level 2 Unit 10 33 Kinsellas Drive

LANE COVE NSW 2066

Gregory Asher Sernack. MIPA, M.Comm, IPA.

Gregory Sernack Financial Services is a personalized financial services practice run solely by the principal, Gregory Asher Sernack, a CERTIFIED PUBLIC ACCOUNTANT and member of the Australian Institute of Public Accountants, holder of  a Master of Commerce degree and an Australian Financial Services License No 484657.Gregory Sernack is a member of the Financial Planning Institute and the Financial Ombudsmen Services.The holding of this financial services license required meeting stringent statutory requirements regulated by the Australian Investment and Securities Commission. We are somewhat unique in that we provide therefore not only accounting but also financial services.

TO HAVE OR HAVE NOT-

A Self Managed Superannuation Fund (SMSF)

According to the Australian Taxation Office (ATO) up to the end of September 2016, there were 581,736 SMSFs in existence, a 23% increase since June 2012.

There are just 42 industry funds and 39 public sector funds that between them account for $831 billion in funds under management or 40 per cent of all super. On top of that there are 142 independent retail funds managing $545 billion, 26 per cent of all super, and then 579,550 SMSFs that manage $624 billion, 30 per cent of all super.(SMH Nov 2016.)

You must appoint a trustee/trustees and be subject to a trust deed.

Trustee structure options:

Corporate trustee – a company acts as the trustee and each member is a director. This structure allows simpler recording and registering of assets, providing administration efficiencies and flexibility in membership. Company establishment and ongoing fees are applicable with this structure.

Individual trustee – each member is appointed as a trustee, with a minimum of two trustees.

An SMSF is a private superannuation fund, regulated by the Australian Taxation Office (ATO), that you manage yourself. SMSFs can have up to four members. All members must be trustees (or directors if there is a corporate trustee) and are responsible for decisions made about the fund and compliance with relevant laws. Family Super Fund is an option.

An SMSF is a legal tax structure with the sole purpose of providing for your retirement. SMSFs operate under similar rules and restrictions as ordinary super funds. As a trustee you must:

• Carry out the role of trustee or director, which imposes important legal obligations on you
• Set and follow an investment strategy that is appropriate for your risk tolerance and is likely to meet your retirement needs
• Have the financial experience and skills to make sound investment decisions
• Have enough time to research investments and manage the fund
• Budget for ongoing expenses such as professional accounting, tax, audit, legal and financial advice
• Keep comprehensive records and arrange an annual audit by an approved SMSF auditor
• Organise insurance, including income protection and total and permanent disability cover for super fund members
• Use the money only to provide retirement benefits.

Trustees Responsibility.

If you decide to set up an SMSF as Trustee, you are personally liable for all the decisions made by the fund – even if you get help from a professional or another member makes the decision.

Therefore it is essential that you have the support of professionals to help you manage your SMSF.

ADVANTAGES OF A SMSF

An advantage or disadvantage of operating a SMSF must be based on individual circumstances. Having a SMSF is not for everybody.

1. SMSF gives you total control and opportunity for diversification of your Super by allowing you to choose where you invest your Super Benefit however you must develop an appropriate Investment Strategy. SMSF can invest in a wide range of investments e.g Term Deposits, Australian & International Shares, Residential & Commercial Property. You can create your own trust deed terms in regards to your spouse and beneficiaries and through death benefit nominations. A SMSF may invest in Residential & Commercial Property through related party or through lenders in limited recourse borrowing arrangement.
2. Save on fees. An SMSF can also be the most cost effective type of Superannuation Fund however it is generally accepted that a minimum balance of $300,000 is preferred.Consolidate 4 members’ Super in one SMSF to reduce the average fee per member to run an SMSF. Costs of administration are generally consistent over the years even though your investment grows.
3. Accumulation and Pension Funds. With Retail and Industry Funds your benefit is typically invested separately in a Pension or an Accumulation Account. An SMSF is a Pension and Accumulation Funds in one. You can commence a Pension and continue contributing to the same SMSF. There is no need to split your Super Benefit into multiple Funds. You may commence a Transition to Retirement Pension after 55 years that can provide tax free income .
4. You can make In Specie contributions by the transfer of assets from your personal name to an SMSF. This may allow you to consolidate your Family Assets under the one SMSF tax advantaged umbrella however taxation and capital gains tax issues should be considered.
5. Tax Concessions. SMSF funds are taxed at 15% and are able to claim tax credits from franked dividends unlike companies. If a fund is in the pension phase, the tax credit is refundable. If the fund is in the Pension phase all income is tax free in retirement unlike ordinary tax payers who pay tax over the concessional amount of $18,200.00. The amount of Capital Gains Tax is subject to a 33.333% equivalent to a 10% capital gain tax. Members who meet the conditions of release/retirement/pension phase after reaching 60 years receive their income tax free.

7.Small Business Concessions. You may utilise super rules which permit SMSF’s to invest in business real property either directly in commercial property or through non geared Unit Trusts or warrant trusts and lease back the property to a related party.

8. SMSF and Spouse contributions. You have the opportunity to even out superannuation balance between spouses by splitting the lower of 85% of the concessional contribution cap.
9. Advantages of Superannuation Contributions generally-

You may claim as a personal tax deductions from 1^st July 2017 for personal superannuation contributions up to the maximum limit to your SMSF however this is not exclusive to SMSF nor is the opportunity to make salary sacrifice arrangements with your employers to provide for your retirement.

You may also claim insurance deductions for life cover, total and permanent disability, salary continuation etc through the fund that you could not claim personally.

Re-contribution Strategies. You may also maximise the tax free component of your SMSF balance for estate planning purposes by recontributing your balance in your SMSF in the retirement phase.

DISADVANTAGES OF A SMSF

1.Ongoing time Commitment. There is the time cost of preparing and signing documents as well as managing investments. An administration service would reduce this time commitment.

2.Non-Compliance Risk. Risk of prosecution of the trustees individually, tax penalties and trustees are held to be personally liable. An administration service would reduce this risk of non-compliance.

3. Ongoing Costs. Superannuation funds with small balances may find the ongoing costs of running a SMSF prohibitive otherwise a retail superannuation fund may be preferred. There is no national compensation scheme or complaints tribunal for losses, matters are heard by the courts, losses however can be carried forward and used to reduce future tax liabilities. Trustees must manage a SMSF in accordance with the SMSF Investment strategy to provide for the future retirement of members or their beneficiaries. Trustees must ensure that there is sufficient liquidity so that the SMSF may meet its debts as they fall due.
4. Breach of Rules. Members and the trustees cannot breach the In-House rules, must meet the sole purpose test at all times and not use SMSF assets for their personal use or benefit.
5. Keeping current with laws of precedent and regulations. An administration service should keep the trustees informed, update documents and reduce the risk of non-compliance.
6. Consistency with life goals and ambitions and personal estate. Our individual circumstances, needs and wants are all different and any changes should be consistent with life goals and ambitions and with any intentions regarding personal estates. A solid informed discussion and seeking the advice of a licensed ASIC financial service provider should greatly assist in allowing individuals to make determinations.

What Superannuation Rules Remain the same for 2017-2018 Financial Years.

The rules of the Australian superannuation system that remain unchanged for the 2017/2018 financial year are detailed below.

Superannuation Guarantee (SG) rate at 9.5%SG rules have not changed for the 2017/2018 year. Under the SG Laws ,a employer must make compulsory superannuation contributions for the benefit of employees, these contributions will start to increase over time but remains in place until 30^th June 2021.

A employer has to contribute the equivalent of 9.5 per cent of an employee’s ordinary time earnings to an employee’s super fund and will increase to 10 per cent for the 2021/2022 year, and gradually increase to 12 per cent from July 2025.

Super fund investment earnings still taxed at 15% which is a tax effective alternative for Australians paying higher rates of tax on personal earnings but since 1 July 2017 the government has imposed a cap on the value of assets that you may take into retirement phase and that transfer balance cap is $1.6 million. Super benefits for over-60s remain tax-free except when an individual belongs to certain older public sector funds and the individual receives a benefit from an untaxed source:

Concessional Tax Treatment. If you’re aged under 60 years but you have reached your preservation age, the taxable component of your super benefit payments from a taxed source will continue to receive concessional tax treatment, in the form of a 15 per cent pension tax offset for the taxable component of super pension payments, and a tax-free threshold for lump sum payments.

Work test for over-65s remains . if a person aged 65 years or over wishes to make a super contribution, then they must work 40 hours in a 30-day period in the financial year in which he or she plans to make the super contribution.

Splitting Contributions. You can still split my super benefits with your spouse.

The new Low Income Superannuation Tax Offset (formerly Low Income Super Contribution) continues but for lower-income earners, the ATO continues to pay the Low Income Super Contribution, which consists of a a refund of contributions tax 15% into an individual’s super account. If you earn less than $37,000 and concessional contributions are paid into your super account, either by your employer or yourself, you can expect a refund of up to $500 a year for the contributions tax deducted from the super contributions. The threshold of $37,000 applies to your ‘adjusted taxable income’, which includes non-SG concessional contributions, net investment losses and several other items.

Government Co Contributions for Concessional Contributions. If your total income is less than $51,813 for the 2017/2018 year, and you make a non-concessional contribution to your super fund, the federal government will make a tax-free co-contribution to your super account. The federal government will pay you 50 cents for each dollar you contribute to your super fund in after-tax dollars, subject to you also satisfying a work test and assuming you’re under the age of 71. The maximum co-contribution of $500, on a $1,000 after-tax contribution, is payable if your total income is less than $36,813 for the 2017/2018 year.

Tax treatment of death benefits is similar, in most cases. The tax treatment of death benefits is unchanged from previous financial years, with dependants under the tax laws e.g spouses and children under the age of 18 will continuing to receive death benefits free of tax, and non-dependants e.g  financially independent adult children liable for a 15% tax on the taxable component of the death benefit.

Please contact us should you require further explanation or assistance.

For a more detailed explanation you can also refer to the ATO website.

Gregory Asher Sernack

FSL License Number 484657

Level 2 Unit 10 33 Kinsellas Drive

LANE COVE NSW 2066

Gregory Asher Sernack. MIPA, M.Comm, IPA.

Gregory Sernack Financial Services is a personalized financial services practice run solely by the principal, Gregory Asher Sernack, a CERTIFIED PUBLIC ACCOUNTANT and member of the Australian Institute of Public Accountants, holder of  a Master of Commerce degree and an Australian Financial Services License No 484657.Gregory Sernack is a member of the Financial Planning Institute and the Financial Ombudsmen Services.The holding of this financial services license required meeting stringent statutory requirements regulated by the Australian Investment and Securities Commission. We are somewhat unique in that we provide therefore not only accounting but also financial services.

DISCLAIMER

Gregory Sernack is licensed to provide advice under a Limited Australian Financial Services License (AFSL) as a recognised public accountant to give general advice for Financial Planning and Superannuation. Information provided is of a general nature and is based on factual information and is not intended to imply a recommendation or opinion about a financial product or course of action..

Please be advised that (a) that the advice has been prepared without taking into account clients objectives, financial situation or needs; (b) the client should, therefore, consider the appropriateness of the advice, in light of their own objectives, financial situation or needs, before acting on the advice; and (c) the advice does not relate to the acquisition, or possible acquisition, of a particular financial product. If the client is considering a particular product, the client should obtain a Product Disclosure Statement (PDS) (if required) relating to the product and consider the PDS before making any decision about whether to acquire the product: s949A (2).

April 2018    Information Guide No 1.

Individuals as part of Tax effective retirement planning will need to monitor their Total Superannuation Balance (TSB) as obligations and rights are affected.

The total superannuation balance (TSB) came into effect on 1 July 2017. Many superannuation obligations and rights depend on a member’s TSB which is generally accepted as the total amount a person has in all Australian superannuation funds whether in the pension phase and accumulation phase. This news update is intended as a general information guide only and individuals should make their own enquiries. The ATO website also has further details.

Eligibility for the five-year carry forward of unused concessional contributions cap where TSB less than $500,000.

It is suggested that if an individual’s total superannuation balance just before the start of the relevant financial year is less than $500,000, they may be able to access concessional contributions not previously fully utilised and increase concessional contributions for one or more of the previous five financial years. Refer s 291-20 of the Income Tax Assessment Act 1997  (ITAA 1997).

The $500,000 figure is not subject to indexation and is the cap amount.

Self-managed superannuation fund (SMSF) event-based reporting TSB concession less than $1,000,000 TSB.

SMSFs are not be required to report under the Australian Taxation Office’s (‘ATO’s’) transfer balance account report (‘TBAR’) regime on a compulsory basis until 1 July 2018 as advised by the ATO. SMSFs may wish to commence voluntary reporting earlier. The ATO administrative concession, the TBAR reporting frequency that applies to SMSFs paying existing before 1^st July 2017 retirement phase pensions depends on the TSB of the fund members. The guideline is as follows-

• SMSFs that only have members with a TSB of less than $1,000,000 report events at the same time that the SMSF lodges its annual return; or
• SMSFs that have a member or members with a TSB of $1,000,000 or more will be required to report events impacting their members’ TBA within 28 days after the end of the quarter in which the event occurs.

The frequency also applies after 1 July 2017 where retirement phase pensions start after that date. A SMSF’s reporting frequency does not change once it has been locked into a particular reporting cycle unless the TSB exceeds the $1,000,000.

Bringing  forward of an individual’s non-concessional contributions (NCCs) cap $1,400,00 and $1,500,000.

Individuals under the age of 65 who are considering triggering a bring forward of their NCCs should check that they satisfy the additional TSB eligibility criteria in s 292-85(3) of the IT AA 1997.

These criteria are broadly summarised as follows:

• The individual’s NCCs for the first year must exceed the general NCCs cap for that year. For example, the individual’s NCCs for FY2018 must exceed $100,000;
• Immediately before the start of the first year, the individual’s total superannuation balance (TSB) does not equal nor exceed the general transfer balance cap (TBC) for the first year. For FY2018, the general TBC is $1,600,000, and this amount will be subject to indexation in later FYs;
• The individual is under 65 years at any time in the first year;
• The individual’s NCCs cap for the first year does not constitute a second year or third year of a ‘bring forward’ of the individual’s NCCs cap that was previously triggered; and
• The difference (also known as the first year cap space) between the general TBC for the first year and the individual’s TSB immediately before the start of the first year exceeds the general NCCs cap for the first year. For example, assuming FY2018 is the first year, the difference between $1,600,000 and the individual’s TSB immediately before the start of FY2018 must exceed $100,000 in order for the individual to be eligible to trigger a ‘bring forward’ of their NCCs.

Once these criteria are satisfied, an individual’s TSB immediately before the start of the first year determines whether they will be able to ‘bring forward’ between two or three years’ worth of the annual NCCs cap. In order to ‘bring forward’ the maximum amount of three years’ worth of the annual NCCs cap, the difference between the general transfer balance cap (‘TBC’) and the individual’s TSB at the test time must exceed an amount equal to twice the annual NCCs cap.

Thus if an individual wishes to trigger a ‘bring forward’ period of three years starting from FY18, the difference between the general TBC of $1,600,000 and  the individual’s TSB must be below $1,400,000. If the individual’s TSB at the test time exceeds $1,400,000 but remains below $1,500,000, the individual will only be able to trigger a ‘bring forward’ period of two years $200,000.

The carry forward cap $100,000 is not currently subject to indexation

Disregarded small fund assets less than $1,600,000.

Effective as from 1 July 2017, SMSFs and small APRA funds will be precluded from using the segregated method to claim except income in certain circumstances. Section 295-387 of the ITAA 1997 sets out the criteria for this limitation applying and it is known as the disregarded small fund assets rule. The segregated method allows certain assets to be nominated as retirement assets when calculating exempt current pension income. One of the criteria for the rule is that a small fund member has a TSB that exceeds $1,600,000 just before the start of the income year where the fund has at least one retirement phase member. Under the rule, the fund would be required to apply the unsegregated method for calculating its exempt current pension income in the following income year.

The $1,600,000 threshold is not subject to indexation in these circumstances.

Making an NCC if the $1,600,000 threshold is exceeded.

If an individual’s TSB immediately before the start of FY2018 equals or exceeds $1,600,000, then they cannot make any NCCs for FY18 without triggering the excess NCC regime and exceeding the $1,600,000 threshhold.

The $1,600,000 threshold is subject to indexation due to the general rules indexation rules that apply to the TBC currently $1,600,000.

Offset spouse contribution

Section 290-230 of the ITAA 1997 sets out the criteria for when an individual is entitled to a tax offset for making an NCC to a spouse’s nominated superannuation fund if, immediately before the start of the FY of the contribution, their spouse’s TSB equals or exceeds the general TSB $1,600,000, then the individual is not entitled to a tax offset for a contribution made to a superannuation fund for their spouse in FY18.

The $1,600,000 threshold is subject to indexation due to the general indexation rules that apply to the general TBC.

Government co-contribution in respect of low income earners

The eligibility for the government co-contribution is set out in S6 of the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 sets out the criteria .One of the criterion is that immediately before the start of that FY, the individual’s TSB is less than the general TBC for that FY currently at $1,600,000.

The $1,600,000 threshold is subject to indexation due to the general indexation rules that apply to the general TBC.

In Summary-

At times a complex area of law, and where in doubt, expert advice should be obtained.

Please contact us should you require further explanation or assistance.

For a more detailed explanation you can also refer to the ATO website.

Gregory Asher Sernack

FSL License Number 484657

Level 2 Unit 10 33 Kinsellas Drive

LANE COVE NSW 2066

Gregory Asher Sernack. M Comm MIPA AFPA AFSL.

Gregory Sernack Financial Services is a personalized financial services practice run solely by the principal, Gregory Asher Sernack, a CERTIFIED PUBLIC ACCOUNTANT and member of the Australian Institute of Public Accountants, holder of  a Master of Commerce degree and an Australian Financial Services License No 484657.Gregory Sernack is a member of the Financial Planning Institute and the Financial Ombudsmen Services.The holding of this financial services license required meeting stringent statutory requirements regulated by the Australian Investment and Securities Commission. We are somewhat unique in that we provide therefore not only accounting but also financial services.

DISCLAIMER

Gregory Sernack is licensed to provide advice under a Limited Australian Financial Services License (AFSL) as a recognised public accountant to give general advice for Financial Planning and Superannuation. Information provided is of a general nature and is based on factual information and is not intended to imply a recommendation or opinion about a financial product or course of action..

Please be advised that (a) that the advice has been prepared without taking into account clients objectives, financial situation or needs; (b) the client should, therefore, consider the appropriateness of the advice, in light of their own objectives, financial situation or needs, before acting on the advice; and (c) the advice does not relate to the acquisition, or possible acquisition, of a particular financial product. If the client is considering a particular product, the client should obtain a Product Disclosure Statement (PDS) (if required) relating to the product and consider the PDS before making any decision about whether to acquire the product: s949A (2).

Information Guide No 2.

Contribution caps

The CGT cap amount for non-concessional contributions is $1.480m for 2018-19 (up from $1.445m).

The concessional contributions cap is $25,000 for 2018-19 (unchanged from 2017-18). As the concessional cap is now only indexed in $2,500 increments on the Australian weekly ordinary time earnings indexation factor, it is not expected to increase to $27,500 until 2023.

The non-concessional contributions cap (which is set at 4 times the concessional cap) is also unchanged at $100,000 for 2018-19 (or $300,000 under the bring-forward rule over 3 years).

Super guarantee

While the super guarantee is frozen at 9.5% until 1 July 2021, the “maximum contribution base” will rise to $54,030 per quarter from 2018-19 (up from $52,760 for 2017-18). An employer is not required to provide the minimum super guarantee support for that part of an employee’s ordinary time earnings (OTE) above the quarterly maximum contribution base (ie $54,030 for 2018-19). This quarterly maximum represents a per annum equivalent of $216,120 for 2018-19.

Co-contributions

The Government co-contribution “lower income threshold” is $37,697 for 2018-19 (up from $36,813 for 2017-18); the “higher income threshold” is $52,697 (up from $51,813).

Super benefits

The following indexed thresholds apply for 2018-19:

• superannuation lump sum low rate cap – $205,000 (up from $200,000).
• untaxed plan cap – $1.480m (up from $1.445m).
• ETP cap amount – $205,000 (up from $200,000).
• genuine redundancy and early retirement payments – tax-free amounts: base amount – $10,399 (up from $10,155); service amount – $5,200 (up from $5,078).

Pension cap

The general transfer balance cap will remain at $1.6m for 2018-19 (unchanged from 2017-18). This also means that the “defined benefit income cap” of $100,000 pa is unchanged for 2018-19. Likewise, the “total superannuation balance” threshold of $1.6m is unchanged for 2018-19.

First home super withholding tax and downsizer contributions.  

Regulations have been registered to enable super funds to accept “downsizer contributions” and prescribe a withholding tax rate of 17% for amounts released under the First Home Super Saver (FHSS) Scheme.

First home buyers are permitted to withdraw super contributions (made from 1 July 2017) to pay for a first home deposit. The scheme allows first home contributions up to $15,000 per year (and $30,000 in total), subject to the contribution caps. Withdrawals from 1 July 2018 are taxed at marginal rates less a 30% offset. If the ATO cannot make an estimate of the individual’s marginal tax rate, the regulations require the Commissioner to withhold 17% of the assessable FHSS released amount. Any difference in the amount withheld and the actual tax liability will be refunded through the assessment process.

The regulations also amend the contribution rules in the SIS Regs to enable super funds to accept downsizer contributions from individuals aged 65 and older who do not otherwise satisfy the work test (or are 75). Eligible individuals can make additional non-concessional contributions up to $300,000 from the proceeds of selling their home where the contract is entered into on or after 1 July 2018.

Information provided by the Institute of Public Accountants15th March 2018.

Please contact us should you require further explanation or assistance.

For a more detailed explanation you can also refer to the ATO website.

Gregory Asher Sernack

FSL License Number 484657

Level 2 Unit 10 33 Kinsellas Drive

LANE COVE NSW 2066

Gregory Asher Sernack. M Comm MIPA AFPA AFSL

Gregory Sernack Financial Services is a personalized financial services practice run solely by the principal, Gregory Asher Sernack, a CERTIFIED PUBLIC ACCOUNTANT and member of the Australian Institute of Public Accountants, holder of  a Master of Commerce degree and an Australian Financial Services License No 484657.Gregory Sernack is a member of the Financial Planning Institute and the Financial Ombudsmen Services.The holding of this financial services license required meeting stringent statutory requirements regulated by the Australian Investment and Securities Commission. We are somewhat unique in that we provide therefore not only accounting but also financial services.

DISCLAIMER

Gregory Sernack is licensed to provide advice under a Limited Australian Financial Services License (AFSL) as a recognised public accountant to give general advice for Financial Planning and Superannuation. Information provided is of a general nature and is based on factual information and is not intended to imply a recommendation or opinion about a financial product or course of action..

Please be advised that (a) that the advice has been prepared without taking into account clients objectives, financial situation or needs; (b) the client should, therefore, consider the appropriateness of the advice, in light of their own objectives, financial situation or needs, before acting on the advice; and (c) the advice does not relate to the acquisition, or possible acquisition, of a particular financial product. If the client is considering a particular product, the client should obtain a Product Disclosure Statement (PDS) (if required) relating to the product and consider the PDS before making any decision about whether to acquire the product: s949A (2).

April 2018 Information Guide No 3.

Please be aware that personal super contributions claimed as an income tax deduction count towards the concessional contribution cap of $25,000 for 2017/18.

Thus if you earnt $100,000 for 2017/2018, your employer will contribute $9,500 to your nominated superannuation fund leaving $15,500 maximum amount that can be claimed as an income tax deduction to avoid exceeding the cap and incurring penalties.

This is because your cap also includes contributions made by your employer such as employer contributions for super guarantee (SGL) purposes or under salary sacrifice agreements.

Non-concessional contributions can still be made up to $100,000 for 2017/2018 but cannot be claimed as tax deductions.

Please contact us should you require further explanation or assistance.

For a more detailed explanation you can also refer to the ATO website.

Gregory Asher Sernack

FSL License Number 484657

Level 2 Unit 10 33 Kinsellas Drive

LANE COVE NSW 2066

Gregory Asher Sernack. M.Comm, MIPA AFPA AFSL

Gregory Sernack Financial Services is a personalized financial services practice run solely by the principal, Gregory Asher Sernack, a CERTIFIED PUBLIC ACCOUNTANT and member of the Australian Institute of Public Accountants, holder of  a Master of Commerce degree and an Australian Financial Services License No 484657.Gregory Sernack is a member of the Financial Planning Institute and the Financial Ombudsmen Services.The holding of this financial services license required meeting stringent statutory requirements regulated by the Australian Investment and Securities Commission. We are somewhat unique in that we provide therefore not only accounting but also financial services.

DISCLAIMER

Gregory Sernack is licensed to provide advice under a Limited Australian Financial Services License (AFSL) as a recognised public accountant to give general advice for Financial Planning and Superannuation. Information provided is of a general nature and is based on factual information and is not intended to imply a recommendation or opinion about a financial product or course of action..

Please be advised that (a) that the advice has been prepared without taking into account clients objectives, financial situation or needs; (b) the client should, therefore, consider the appropriateness of the advice, in light of their own objectives, financial situation or needs, before acting on the advice; and (c) the advice does not relate to the acquisition, or possible acquisition, of a particular financial product. If the client is considering a particular product, the client should obtain a Product Disclosure Statement (PDS) (if required) relating to the product and consider the PDS before making any decision about whether to acquire the product: s949A (2).