Effective 1 July 2017 the tax-exempt status of the income from assets supporting a TRIS will cease. TRISs will be taxed as accumulation accounts. They will largely cease to represent a tax arbitrage opportunity and revert to their original intended use – a means of accessing preserved monies before retirement. Also, after this financial year, it...
From 1 July 2017, the threshold at which high income earners will pay additional contributions tax will be lowered from $300,000 to $250,000. This will lower the cutoff point before an extra 15% contributions tax is payable on deductible contributions. Due to the broad nature of the inclusions (taxable income plus reportable fringe benefits plus total net...
Concessional contributions will decrease but eligibility to contribute will be broadened. From 1 July 2017, the concessional contribution cap will be reduced to $25,000 from $30,000 (under 50s) or from $35,000 (50s plus). Currently, an income tax deduction for personal superannuation contributions is only available to people who earn less than 10 per cent of their income...
We will be sending you a series of short articles on the impending super reforms over the coming days. We will be breaking down the changes into more digestible pieces whilst suggesting planning options. Our particular focus will be the period leading up to 30 June 2017 when a careful assessment of each client’s position will...
The Super Reforms have just been passed through both Houses of Parliament. Let the games begin....
As we have been able to negotiate a more competitive arrangement with our legal outsourcers we are pleased to pass on these savings to you. Effective immediately; Our fee for providing a new trust deed, all necessary registrations, minutes and bank account opening (if required) has been reduced from $635 to $300. Our fee for establishing a corporate trustee,...
The operation of the bring forward provisions under the proposed new regime is a little different to the current rules. The assumption that the full $540k bring forward limit can be carried forward to the next two years is not correct. Let’s consider a few cases. If a member (under age 65) begins their 3 year bring forward...
In a previous newsletter we canvassed the problems that the proposed NCC cap changes announced in the budget would create for those seeking to rectify uncommercial, related party, limited recourse loans. Effectively the changes, if implemented, would generally remove the ability to reduce existing loans by forgiving the debt and converting it to a non concessional...