Impact Although there has been much publicity surrounding these changes, the Government estimates that 96% of individuals with superannuation will either not be affected by these changes or will be better off. The majority of the 4% of individuals that are adversely affected by these changes are unlikely in any case to rely on the Age Pension in retirement. Strategies With these changes not due to come into effect until 1 July 2017, there are a number of strategies individuals may wish to consider over the coming months to optimize their position including: Ensure Your Contributions Are Deductible If you are contemplating making an after-tax contribution to superannuation and like many employees and contractors who draw income from salary and wages you are not eligible to claim a deduction under current law, then you may wish to hold off on making your contribution. If you delay the contribution until after 30 June 2017, then you will generally be able to claim a deduction for that contribution. Under the current law, you cannot. Beat the Non-Concessional Cap Reduction Over the coming months leading up to 1 July, taxpayers who are contemplating making large non-concessional, after-tax contributions (e.g. you may have received an inheritance, or sold a property and wish to contribute the proceeds) may wish to consider bringing forward those contributions to before 1 July. If making a large contribution, bringing it forward will enable you to take advantage of the currently larger caps and thus deposit more money into the concessionally taxed superannuation environment sooner, and enjoy the tax concessions from an earlier date. Review Your Salary Sacrifice Arrangements From 1 July 2017, employees who salary sacrifice may need to review their arrangements to ensure that you are not in breach of the reduced $25,000 concessional cap. Further Advice The information contained in this article is general in nature. Your specific circumstances, objectives and financial needs have not been taken into consideration. GOVERMENT ESTIMATES 96% WILL NOT BE AFFECTED BY THESE CHANGES If you would like specific advice on how they impact you, please contact Kellie Powell at PT Partners on (07) 3808 4499. You can make an appointment with Kellie at bookings.ptpartners.net.au/ KelliePowell 104 Pindara Magazine 2016
Pindara Private Hospital Magazine - Issue Nine
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