Last years Budget announced major changes to superannuation not seen for over a decade. The changes will introduce increased reporting requirements with the new reporting to occur before 30 June 2018. The reporting requirements will be ongoing for the life of superannuation members and the announced changes are likely to impact superannuation balances in the short, medium and longer term.
We recommend all members consider the impact of their personal superannuation in light of these changes.
The major changes include:
- Introduction of a superannuation Transfer Balance Cap limiting pension accounts (and the tax free portion) to $1.6m in assets per member (subject to indexation).
- Recipients of death benefits having to include benefits as part of the $1.6m transfer balance cap resulting in an increased amount of superannuation being subject to taxes on the death of a member.
- Reduced superannuation concessional and non-concessional caps.
- Annual and quarterly reporting of transfer balance cap movements. (TBAR Reporting).
- Resetting of cost base of assets to market value as at 30 June 2017.
We will be contacting trustees of SMSF’s directly to advise of the their upcoming obligations.
Further information about the upcoming changes relating to superannuation can be downloaded here.