The SMSF Association is urging SMSF specialists to quickly get across the detail of the Government’s superannuation legislation that was enacted in the last parliamentary session.
Association Head of Policy Jordan George says the legislation introduced some significant changes to superannuation, and it’s imperative SMSF specialists understand how the goal posts have moved so they can advise their trustee clients accordingly.
“The introduction of the $1.6 million cap on tax-free retirement assets involves new and complex principles that will certainly affect some SMSF trustees.
“It includes complicated transitional CGT (capital gains tax) relief and the need to re-evaluate strategies around reversionary pensions, small business CGT contributions and how the operation of the cap will affect existing income streams.
“In addition, changes to the concessional and non-concessional contribution caps mean that SMSF specialists should be looking to maximise the current rules before lower caps take effect on 1 July 2017.
“Remember, too, complex transitional rules apply to fund members who may have triggered the non-concessional contribution bring-forward rule, or are approaching the $1.6 million superannuation balance that limits NCCs from 1 July 2017.”
George adds that advisors should also assist clients with existing transition to retirement pensions that will no longer have tax-free earnings from 1 July 2017.
“These advice needs paint a complicated operating environment for SMSF specialists, and it is important that they understand the legislation and its strategic implications for clients.
“To assist in the process, the Association is supplying members with a series of comprehensive go-to guides to assist them understand the legislation.
The 2017 National Conference will also address these issues in great depth, and members are urged to attend and take advantage of hearing from experts on all the implications of the legislative changes.”
The ‘Go-to guide’ on contributions are available to non-members at this link.