Super Reforms - What you need to know

Do you earn more than $250,000 per annum including super?

Concessional contributions into Super are taxed at 15%, however higher income earners are liable to pay 30% tax on Concessional Contributions. From 1 July, 2017 the income threshold for paying the 30% tax (Division 293 tax) will reduce from $300,000 to $250,000.

  1. If you will be affected by the reduction in income threshold and will be liable to pay the additional tax, consider making the most of your pre-tax allowances before June 30, 2017.
  2. You may need to review your superannuation and retirement strategy to understand how the additional tax will impact on your retirement savings.
  3. Consider events which may affect your income including redundancy payments or capital gains. If you exceed the $250,000 income threshold you will receive a Division 293 Notice, which may be issued more than 12 months after you have exceeded the income threshold.

We encourage you to seek professional financial advice to understand how the complexity of reforms may impact on your personal situation and to review appropriate options and strategies aligned to your financial goals.

If you would like advice on how the changes may affect your Superannuation and retirement planning, I encourage you to contact our office on 07 3720 1299 or email admin@wealthfundamentals.com.au so we can help you to make the most of your Super.

Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306 Australian Credit Licence No. 357306 trading as Fortnum Financial Advisers.
The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only - unless otherwise stated. Wealth Fundamentals strongly suggests that you should not act on it without first obtaining professional advice specific to your circumstances. This information is based upon our understanding of legislation at the time of writing. Such legislation may be subject to change.
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