Are you aware of the new superannuation limits from 1 July 2017?
From July 1, the annual limit on how much can be contributed from pre-tax income to super will be reduced to $25,000.
Therefore, anyone who has the ability to do so should consider making additional deductible contributions by 30 June 2017.
Individuals over 50 can contribute $35,000 in 2016-17, including super guarantee payments. Everyone else can contribute up to $30,000.
New limits on post-tax contributions will also kick in at the end of the financial year so individuals should exploit the current system while they can.
Under the existing rules, taxpayers can make up to $180,000 in post-tax contributions a year, or $450,000 over three years. On July 1, post-tax contributions will be limited to $100,000 a year, or $300,000 over three years.
The maximum amount that can be held in a post-retirement account will also be capped at $1.6 million. Anything above that will need to be moved back into an accumulation account.
The $1.6 million cap applies per person, and couples with uneven balances should think about smoothing them out.
Those over 60 years of age may still have an opportunity before July 1 to draw down a tax-free withdrawal from their super fund and recontribute up to $540,000 to their spouse’s account to even things up
Good time to have a chat with your accountant or Financial Planner on the best way to maximise your super payments to assist you in retirement and to help minimise your tax for 2016-17.
