As you may be aware, through our previous correspondence, media or newspapers, a number of changes are impacting on superannuation effective 1 July 2017.
One of the primary changes will limit the amount a superannuation member can have in pension to $1.6m, across all funds.
By actually sitting down and preparing a budget, you are demonstrating a proactive approach to managing your business.
With the end of financial year fast approaching, now is a good time to think about opportunities and risks that should be addressed before 30th June 2017.
To help you with this, we have included some of the key issues that clients should be thinking about pre year end. If you would like to discuss any of these, or other things that are on your radar, don’t hesitate to contact your Williams Hall Chadwick team.
We are pleased to welcome everyone to the Autumn issue of the Hall Chadwick Association newsletter. This is a great way to keep you updated with some of the things that are happening within the Hall Chadwick group. And plenty is happening:
Andrew Perkins reports on a recent project in Longreach where a complex partnership between State and Commonwealth Governments, Regional Council, local communities and landowners came together to solve a local infrastructure problem.
We also hear from Graham Webb on responsibilities accountants have while acting for clients where they become aware of a potentially illegal act.
Gino Malacco from our Sydney office updates us on a recent tax case where the residency test for foreign incorporated companies was questioned.
Peter Pryn from Melbourne also reminds us that ASIC is overseeing the implementation of new accounting standards.
We report on our new international membership with PrimeGlobal, as well as our new office opening in Ormiston, Brisbane.
Mr Scott Morrison, the Federal Treasurer, has handed down his second Budget (the government’s first of its three-year term). Mr Morrison said the Budget is focused on boosting the economy and households, so that “we live within our means and are able to return the Budget to balance in 2020/21”.
The government is proposing to address the housing affordability crisis with a package of tax, superannuation and other measures. Additionally, the Budget contains measures intended to ensure the integrity of the tax and superannuation system.
For further information, please contact your local Williams Hall Chadwick office.
The changes to the superannuation (super) system, announced by the Australian Government in the 2016–17 Budget, have now received royal assent. An overview of the changes is below.
Transfer balance cap of $1.6 million for pension phase accounts
From 1 July 2017, the government will introduce a $1.6 million cap on the total amount that can be transferred into the tax-free retirement phase for account-based pensions. Superannuation savings accumulated in excess of the cap can remain in a superannuation account in accumulation phase, where the earnings will continue to be taxed at the concessional rate of 15 per cent.
An apportionment approach will be used to determine how much cap space a superannuation member still has available. For example, if a member has previously used 75 per cent of their cap they will have access to 25% of the current (indexed) cap.
