Download a free white paper examining the recently-legislated superannuation changes (originally announced in the 2016 Federal Budget), known as ‘Fair and Sustainable Superannuation Reform Package.
It is reported to be a package of some of the most significant changes to superannuation in decades.
In particular, some of the more significant changes are:
- Introduction of a cap on superannuation income streams
- CGT treatment of assets supporting superannuation income streams
- Removal of tax exemption for transition-to-retirement income streams (TRISs)
- Reduction in concessional and non-concessional contributions caps
- Introduction of concessional contributions catch-up
- Amendments to superannuation contributions (eg Low Income Super Contribution and Spouse Contributions)
- Increase tax on concessional super contributions for high income earners
- Expansion of tax-deductibility of super contributions
- Removal of anti-detriment provisions
The issues examined in this paper are:
- How does the transfer balance account (TBA) work?
- How do debits and credits arise in your transfer balance account?
- What is the effect of a commutation on your TBA?
- What is the effect on your TBA if your superannuation income stream fails to comply?
- How is a temporary breach of the TBC different to a normal breach?
- What is an “excess transfer balance” (ETB)?
- What are the transitional provisions in relation to an “excess transfer balance” (ETB)?
- How is excess transfer balance tax (ETBT) calculated?
- How are excess transfer balance determinations issued?
- What is a default commutation notice?
- Can you elect which income stream is to be commuted?
- What is a commutation authority?
- What are the changes to Concessional and Non-concessional Contributions?
- How do the Carry Forward Provisions work?
Michael Roberts
Michael is a Director and Responsible Officer of Bailey Roberts Group. Michael brings to the Group twenty-nine years of experience in Financial Services and qualifications in Financial Planning, Business Management and Tax Law.