BRM Holdich E-News

13 December 2016

Superannuation Changes

The superannuation reforms initially announced by the Federal Government in the 2016 / 2017 Federal Budget on 3 May 2016 have now been revised and received Royal Assent. With a commencement date of 1 July 2017 these reforms include:

  • Reducing the concessional contributions cap to $25,000 per year;
  • Reducing the non concessional contributions cap from $180,000 to $100,000 per year;
  • Reducing the non concessional contribution bring forward cap from $540,000 to $300,000.
  • Allowing employees to claim a tax deduction for personal superannuation contributions;
  • Applying Division 293 tax when income is greater than $250,000 (reduced from $300,000);
  • Increasing the spouse's income threshold range to $37,000 and $40,000.
  • Introducing the low income super tax offset (LISTO) for eligible individuals with an adjusted taxable income below $37,000.The contribution is equal to 15% of total concessional contributions per financial year and is capped at $500.
  • Capping the total amount of accumulated superannuation that can be used to commence a pension at $1.6 million. Members with account based pension balances over $1.6 million will need to transfer the amount over $1.6 million back to accumulation.
  • Taxing Transition to Retirement Pension balances at 15% irrespective of the pension commencement date. Superannuation income stream payments also cease to be treated as lump sum payments for taxation purposes.

In addition to the above, members with total superannuation balances under $500,000 will be able to carry-forward their concessional superannuation contributions cap from 1 July 2018.

Given the complexities and tax implications of the above reforms please contact us should you require further information or would like to discuss any of these items.

Job Accelerator Grant

The Job Accelerator Grant Scheme announced in the 2016 / 2017 State Budget provides eligible businesses with incentives of up to $10,000 for every new full time, part time or casual job position created.

Eligible South Australian businesses liable for payroll tax can receive the maximum $10,000 incentive whereas small and start up businesses who are not liable for payroll tax can receive a maximum incentive of $4,000. New job positions must be registered with Revenue SA within 90 days of the employee’s commencement date.

More information is available on the Revenue SA website.

From all of us at BRM Holdich!

Merry Christmas and Best Wishes for the New Year.

Please note that our office will be closed from 11:30am, Friday 23 December 2016, reopening on Monday 9 January 2017.

Thank you for your support in 2016 and we look forward to seeing you in the New Year.

Important: This is not advice.  Clients should not act solely on the basis of the material contained in this Bulletin.  Items herein are general comments only and do not constitute or convey advice per se.  Also changes in legislation may occur quickly.  We therefore recommend that our formal advice be sought before acting in any of the areas.  The Bulletin is issued as a helpful guide to clients and for their private information.  Therefore it should be regarded as confidential and not be made available to any person without our prior approval.

 

BRM Holdich
Level 8, 420 King William Street
Adelaide SA 5000

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