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YOUR SUPERANNUATION CHECKLIST BEFORE JUNE 30

Superannuation check list
Derek Bouman
DFK Crosbie
 
We are approaching the end of the first 12 months within the new superannuation landscape and Superannuation Specialist Derek Bouman has some valuable tips.
 
The implementation of superannuation reforms effective from 1 July 2017 has meant a full re-evaluation of strategies for retirement and estate planning. It is important now more than ever that you action your strategies to ensure that your super is structured correctly.
 
Here’s some considerations leading up to 30 June:
Your concessional contribution limit – get it right! As of 1 July 2017, the maximum concessional contribution limit is $25,000 per member.
 
Your non-concessional contribution limit – get it right too!
These are your after-tax contributions that can also help you move investments into superannuation from your personal, trust or company name to control your overall tax position. From 1 July 2017 the non-concessional contribution limit is only available where your total superannuation balance is less than $1.6m. The limit is $100,000 per member.
 
Three year non-concessional limit bring-forward. If you’re under 65 you can trigger the three year “bring forward” rule, however the level of non-concessional contribution is altered based on how close your total superannuation balance is to $1.6m. Please refer to Table 1.
 
 
Table 1
Total Superannuation Balance Maximum Non-Concessional Bring-Forward
Less than $1,400,000 $300,000 (3 year bring-forward)
$1,400,000 to less than $1,500,000 $200,000 (2 year bring-forward)
$1,500,000 to less than $1,600,000 $100,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Review your ability to make contributions. If you’re alreadyaged 65, you must have been gainfully employed for at least 40 hours in no more than 30 consecutive days in the financial year before you can make a super contribution. For members aged 75 and older, only mandated employer contributions can be received.
 
Double deductions can still apply so consider your assessable income this year and in the future. Just say you have a large taxable income this year but expect it to be lower next year. In this case you should consider making additional contributions before 1 July 2018 into an unallocated contributions holding account. Of course, you must consider your contribution caps for the following year.
 
Comply with the new $1.6m transfer balance cap From 1 July 2017, members can only transfer a maximum of $1.6m into retirement/pension phase – penalties will apply where you are in excess.
 
Ensure you’ve met the minimum pension obligations.
Current rules allow a tax exemption for earnings inside a superannuation fund that supports a pension. However, the minimum pension must be withdrawn and cleared before June 30. Don’t be caught out!
 
Know your total superannuation balance. It is now crucial for members (as well as their accountants and financial planners!) to know their total superannuation balance. This includes self-managed superannuation fund balances, industry and retail superannuation fund balances as well as defined benefit scheme balances.
 
Review your estate planning. Are your strategies still valid and structured optimally for your circumstances? Given the significant legislative changes applying to superannuation from 1 July 2017, it’s critical to review this along with your superannuation asap.
 
This is merely a brief snap-shot of some strategies to consider before the end of financial year for the sake of your superannuation—and your peace of mind!
 
For further information please contact Derek on (02) 4923 4000, email derek.b@dfkcrosbie.com.au or visit www.dfkcrosbie.com.au
Derek Bouman2 Derek Bouman

joined DFK Crosbie in 2012. He became a Partner in 2014 and is a SMSF Specialist Adviser and authorised representative of Securitor Financial Group Ltd. With over 14 years’ experience in public practice, he works closely with clients to provide them with effective strategies to build and maximise their asset. Derek specialises in superannuation focusing on self-managed superannuation funds, retirement planning and estate planning.

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