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.
Superannuation Tax increase for some Australians: 30% tax on concessional (before-tax) super contributions for high income earners.
Right to receive Age Pension currently increases to at least 65.5 years.
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.