With the superannuation changes and proposals from the 2016 Federal Budget now law, the new measures will impact many clients from 1 July 2017.
The Super Reforms 2017 is here. Are You Ready?
Here are the main areas from the Federal Budget Super Reforms 2017 that need your attention between now and 30 June 2017:
- Have clients that have UK Pension Benefits that they want to transfer to Australia to be able to use the $540,000 non-concessional cap?
- Do you have clients that have pension interests greater than $1.6 million?
- Do your clients need to apply for CGT relief (after moving excess funds into the accumulation phase of a super fund)?
- What about clients receiving a TTR pension who have met a condition of release to convert it into a fully-commutable Account Based Pension?
- Thought about clients who have the capacity or inclination to use the Bring-Forward rule prior to 1 July 2017?
- Clients with the need to roll back TTR pensions if they are no longer needed?
- How about adjustment to salary sacrifice arrangements to reflect the TTR pension that ceased and to avoid exceeding the lower concessional cap?
- Is it better to hold insurance outside superannuation as a result of the lower concessional cap and continue to boost their superannuation balance?
Need your Immediate Action:
- Transfer Balance Cap (TBC)
- Have clients who are currently in excess of the Transfer Balance Cap? Consider a commutation, applying for CGT relief, investing outside of superannuation through personal names or trust structures.
- Total Superannuation Balance (TSB)
- Try to maximise concessional and non-concessional contributions for your clients before the caps are reduced.
- New Non-Concessional Contribution Regime
- If you have clients who are close to or in excess of the Transfer Balance Cap, consider non-concessional contributions by 30 June 2017.
Now is the time to plan. You have a small window of opportunity to get your clients unstuck. Addressing the issues before clients even become aware of them will not only surprise them but delight them. Investing a little extra in a proactive approach now is a valuable strategy than can result in considerable dividends down the line.
Let us help turn your clients into advocates of your brand.
Image by: Nathalia Bariani