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A brief checklist for the new tax year

Welcome to the 2017/18 tax year! 2016/17 delivered enormous changes in superannuation and pensions and now some of the dust has settled, we offer a short list of loose ends to watch for this year:

• Superannuation contributions limits are now $25,000 and $100,000 for concessional and non-concessional contributions respectively. The rules have changed for carry forward and bring forward amounts.

• If your pension accounts were restructured due to the legislated $1.6M cap, your minimum pension payments would have dropped from 1 July 2017. Your cashflow may be impacted. We suggest that you review cashflow requirements.

• Couples should consider/review death benefit nominations and take advice (if you haven’t already) on the most appropriate type of death benefit nomination for you, given the operation of the new transfer balance caps.

• If you’re drawing a Transition to Retirement Pension and are aged under 65, consider the reduced tax effectiveness of this strategy and possibly commute any pension not required, depending on your cash-flow needs. We are happy to provide guidance or advice for those that have to date not received any.

• For those with Self-Managed-Superannuation Funds, ensure that you lodge the CGT relief elections from any restructuring last year with your fund’s 2016/17 return.

• If you’re a housing investor note that deduction limits have been tightened for depreciation, plant write-offs and travel expenses.

• Top rate taxpayers should note that the 2% temporary budget repair levy has gone. The top rate has returned to 45% plus the Medicare levy.

Beware though that the Government’s May 2017 Federal budget propositions have not yet become law, so there could be some policy surprises/changes yet.

If in doubt, don’t hesitate to ask us for guidance.

Disclosure Statement: This communication has been approved and issued by Sovereign Wealth Partners Pty Ltd ABN 18 607 071 367 Corporate Authorised Representative (No. 001233909) of Bennelong Wealth Partners Pty Ltd ABN 44 164 127 833, AFSL 456235.

General Advice Warning: Any advice included in this article and associated links is general in nature and does not take into account your objectives, financial situation or needs. If a product we recommend has a Product Disclosure Statement (PDS), you should read it before making a decision. Past performance is not a reliable indicator of future performance. We do not endorse any information from research providers that we provide to you, unless we specifically say so.

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