The Financial Planning Association of Australia The Financial Planning Association of Australia


UPDATE – 5 April 2017

The Government has amended the Fair and Sustainable Superannuation Regulations affecting death benefits and income streams.

Download the summary of changes

The ATO has provided an update on proposed minor and technical changes to further support the effective implementation of the Government’s superannuation tax reform package, particularly in relation to transition to retirement income streams.

Download the summary of changes

The Australian Tax Office (ATO) has released guidance on a number of key topics to assist you to understand the superannuation changes and how they may apply to your clients. Each piece includes an explanation of the change, what needs to be done before 30 June 2017 and after 1 July 2017 and also includes examples to help you understand how the change applies practically to people in different situations.

Key topics released as at 22 March 2017:

Super changes

New transfer balance cap for retirement phase accounts

Change to non-concessional (after tax) contributions cap

Change to concessional (pre-tax) contributions cap

Navigating new measures: How the ATO is responding

The ATO has also released a series of law companion guidelines detailing the ATO’s view on how the new laws should be applied.

  • Transfer balance cap – guidance on how the transfer balance cap (set at $1.6 million for the 2017-18 financial year) operates for account-based superannuation income stream products. This includes limiting the amount of capital individuals can transfer to the retirement phase to support superannuation income streams.
  • Concessional contributions – defined benefit interests and constitutionally protected funds – clarifies the amendments to the calculation of concessional contributions and excess concessional contributions for defined benefit funds after 1 July 2017.
  • Total superannuation balance – clarifies how to calculate total super balance from 30 June 2017. The guide is important for any members assisting clients with eligibility for unused concessional contributions cap carry forward; non-concessional contributions cap and for the bring forward of your non-concessional contributions cap; and eligibility for the tax offset for spouse contributions.
  • Defined benefit income streams – non commutable, lifetime pensions and lifetime annuities – clarifies how the defined benefit income cap applies to superannuation income stream benefits that are paid from a non-commutable, lifetime pension or lifetime annuity.
  • Capital gains tax (CGT) – guidance on the transitional CGT relief available for superannuation funds because of the transfer balance cap and transition-to-retirement reforms commencing on 1 July 2017.

The ATO will be releasing the additional information and guidelines shortly.

Super reforms at a glance

Read Government announcement about changes to the Budget measures


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