There are a number of things to consider and implement prior to 30 June 2017. Given that there is less than two months until 30 June, it is important that you review your situation now.
The first element to review are your contributions to super. As discussed in these articles recently, this could potentially be your last chance to make contributions to super (especially for those of you who are fortunate enough to have over $1.6 million in super). Importantly, for those over the age of 65 you will need to satisfy a work test before making contributions to super.
During the 2016/2017 financial year the non-concessional (or after-tax) contribution limit is $180,000. Or for those of you who are under age 65 may be able to bring forward three years of non-concessional contributions and contribute up to $540,000 (3 x $180,000).
The concessional (or pre-tax) contribution limit during the 2016/2017 financial year is $35,000 for those who are 49 years of age or older and $30,000 for younger individuals. As a reminder, if you are employed, your concessional contributions are your employer (or Superannuation Guarantee) contributions and your salary sacrifice contributions. Or if you are self-employed, your concessional contributions are referred to as personal deductible contributions.
From 1 July 2017 both non-concessional and concessional contribution limits will reduce and your ability to get funds into superannuation will be limited. So you will need to act now if you have funds that you wish to contribute to super.
There are a number of changes that take effect from 1 July 2017 in relation to drawing funds from superannuation. In particular, the earnings associated with a Transition to Retirement Account Based Pension will be taxed at 15% from 1 July 2017. So it is prudent to review your Transition to Retirement strategy before 30 June 2017 to ensure that it will continue to be appropriate for you moving forward.
For those of you who own and operate a Self Managed Superannuation Fund and are retired – you will be required to ensure that you have satisfied your minimum pension requirements. It is important that you ensure you have taken these minimum pension payments prior to 30 June 2017 as you may be liable to pay tax on your earnings if you do not draw enough.
We encourage you to review your situation now as 30 June 2017 will be upon us soon.