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 Federal Budget Superannuation Reforms 2017 is here. Are You Ready?
Federal Budget Super Reforms 2017
Here are the main areas from the that need your attention between now and 30 June 2017:
- Clients in UK Pension Benefits that they want to transfer to Australia to be able to use the $540,000 non-concessional cap?
- Clients that have pension interests greater than $1.6 million?
- Also, do your clients need to apply for CGT relief (after moving excess funds into the accumulation phase of a super fund)?
- Those receiving a TTR pension who can convert it into a fully-commutable Account Based Pension?
- 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?
For immediate action:
- Review their Transfer Balance Cap (TBC)
- Clients in excess of the Transfer Balance Cap? Consider a commutation, applying for CGT relief, investing outside of superannuation through personal names or trust structures.
- Another area is to check their Total Superannuation Balance (TSB)
- Furthermore, use up the available contributions caps for your clients before they are reduced
- Especially relevant are the Non-Concessional Contribution caps and restrictions
- Finally, clients close to or in excess of the Transfer Balance Cap should consider non-concessional contributions by 30 June 2017.
In conclusion, now is the time to plan. Use your small window of opportunity. Address the issues beforehand and delight your clients. Investing a little extra in a proactive approach is a valuable strategy that results in considerable dividends down the line.
Most of all, let us help turn your clients into advocates of your brand.
Image by: Nathalia Bariani