Fund your Retirement with Zero Tax up to 1.6 Million Super Balance

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Fund your retirement with zero tax up to 1.6 Million super balance.

We all have limited time to contribute and build up our super to fund our retirement at concessional tax rates. From 1 July 2017 a raft of changes will come into effect to limit how much we can put into super. Concessional (before tax contributions) will be reduced to $25,000 for everyone. Non-concessional (after tax) contributions will reduce from $180,000 per annum currently to $100,000 per annum.

Those nearing retirement have a one-off opportunity to contribute a total of $540,000 non-concessional (after tax) contributions into super before 1 July 2017 before the rules change forever. Using the “bring forward” rule this allows us to contribute up to 3 years of non-concessional contributions into super (provided you have not previously used this in the last 3 years). Currently allowable is $180,000 per annum times 3 years, a total of $540,000. From 1 July 2017 this will reduce to $300,000. You may need to act now if you were intending to sell off assets to fund the retirement. Income from funds in super up to $1.6 million balance are taxed at zero percent, whereas income from assets left outside of super are taxed at normal tax rates, up to 49% for income over $180,000.

Please be aware that the rules around contributions are complicated and exceeding your caps will have very adverse tax consequences, so always specific seek advice before implementing any super strategies.

 

Contact us online or call us 08 9221 5522 today to speak to either myself or one of my client managers.

 

Lilian Fisher

Fund your retirement with zero tax up to 1.6 Million super balance.

Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs. Click for more detail regarding this disclaimer.

 
 
 
 

Warning

The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this website, lnfocus, its officers, representatives, employees and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

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