Slide - We Are Slide - Value Slide - Pride Slide - Focus

Changes to Superannuation - Other Tax Changes - Part 5 of 6

This blog entry forms part 5 of our 6 part series on the changes to superannuation taking effect 1 July 2017.

To access the master index, please click through to this page.

Extra tax on non-commutable income streams 

If a member is receiving pension income from a non-commutable income stream and the annual payments to the member are greater than $100,000, these pensions are subject to special tax treatment. 

Account Based Pensions (the most typical pension paid by self managed superannuation funds) are not non-commutable income streams so if you only receive an account based pension you do not need to worry about these rules. However individuals receiving market linked pensions will be affected and will need personalised advice on how this additional tax can be minimised, and simultaneously advice around keeping the pension within the relevant cap rules.

Removal of ability to segregate assets for tax purposes

 From 1 July 2017, where a superannuation fund member has more than $1.6m in super across all of their funds at the previous 30 June, and that member had a super pension (other than a Transition to Retirement Income Stream) from any fund at the prior 30 June, they will no longer be able to use the segregated asset method of calculating exempt pension income but instead must obtain an actuarial certificate. 

Disclaimers

This information is provided by A Squared Advisers Pty Ltd.

The information provided to you above is purely factual in nature and does not take account of your personal objectives, situation or needs. The information is objectively ascertainable and, therefore, does not constitute financial product advice. If you require personal advice you should consult an appropriately licenced or authorised financial adviser.