As you may already be aware, there are some superannuation rule changes coming into play from 1 July 2017. Therefore, it may be in your interest to take advantage of the current opportunities before the financial year ends.


* At any time during this financial year Please note, if you're 65 or over at the time of making a contribution, a work test must first be satisfied.

Total pension amounts will be limited From 1 July 2017, if you're converting your super into a pension to derive an income in retirement you'll be restricted to transferring a maximum of $1.6 million into a tax-free pension account, not including subsequent earnings. If you already have a pension balance above that, the excess must be placed back into the super accumulation phase (where earnings will be taxed at the concessional rate of 15%) or taken out of super completely before 1 July 2017 to avoid potential penalties.

Also note, if you do transfer $1.6 million into your pension, even if your balance reduces over time, you won't
be able to top up your pension a second time. Transition to retirement pensions will lose their tax exemption Investment earnings on super fund assets that support a pension are currently tax-free. However, this will no longer apply to transition to retirement (TTR) income streams. Earnings on fund assets supporting a TTR income stream will be subject to the same maximum 15% tax rate that applies to super accumulation funds from 1 July 2017.

Opportunities before 30 June 2016
Take advantage of the higher concessional contribution caps before these drop to $25,000 for everyone.
Consider making a larger non-concessional contribution this year in order to maximise what's in super.
Revisit whether you need to continue your transition to retirement if you're not yet 65. It may be worth your while to place the funds back in accumulation mode if you don't need the pension income for your cash flow.

As always, please contact us on 5482 2855 if you'd like personalised advice in this area.