The SMSF Association has welcomed the passage of the Government’s superannuation reform package through the Parliament, but urged SMSF members to seek advice on the changes.
SMSF Association CEO Andrea Slattery said the high level of speculation around what the final changes would be had left many Australians unsure how to respond. However the passage of the legislation gives a high degree of certainty about the rules, allowing those affected to make plans.
Much of the Government’s proposed changes to superannuation, many of which were announced in the 2016 Budget, passed both houses of Parliament contained in the Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016. Though Slattery said, with the passage of the Bill, the important work is now ahead.
“With just over seven months left of the financial year and therefore seven months left till the new super regime kicks in, now is the time for SMSF trustees, members and individuals to make themselves fully aware of the substantial changes and determine what is their best course of action to be implemented before the 30 June 2017 deadline,” Ms. Slattery said.
“Its particularly important to get on top of the changes, as the taxation advantages will be reduced after this financial year.”
“I would strongly advise SMSF trustees and members that their first point of call should be their financial adviser or accountant.”
Slattery pointed to the reduction in the concessional contributions cap, the reduction and changes to the non-concessional contribution cap and associated rules and the Transfer Balance Cap as the headline changes.
“There are many more technical changes involved in the changes however those above are the main ones with the widest scope,” said Ms. Slattery.