Here are the key changes coming up for superannuation on 1 July 2018.
Event based reporting for SMSFs
A new reporting regime commences for SMSFs. All SMSFs must report events that affect their members’ transfer balance accounts (for example, when an SMSF member first starts to receive a pension from their fund). Timeframes for reporting are determined by the total superannuation balances of the SMSF’s members. Where all members of the SMSF have a total superannuation balance of less than $1 million, the SMSF can report this information at the same time as the annual return. SMSFs that have any members with a total superannuation balance of $1 million or more must report events affecting members’ transfer balances within 28 days after the end of the quarter in which the event occurs.
Carry forward concessional contributions
People with super balances below $500,000 will be able to rollover their unused concessional caps for up to 5 years. Unused cap amounts can be carried forward from the 2018-19 financial year; which means the first opportunity to use these new rules will be 2019-20.
If you are over 65, have held your home for 10 years or more and are looking to sell, you might be able to contribute some of the proceeds of the sale of your home to superannuation.
First home saver scheme
First home savers are able to withdraw voluntary, after-tax superannuation contributions they have made to put towards their first home.
Changes to protect employees against inadvertent breaches of concessional caps
Individuals whose income exceeds $263,157 and have multiple employers will be able to nominate that their wages from certain employers are not subject to the superannuation guarantee (SG)*.
Should you have any questions please contact us on 03 8393 1000 here at Paris Financial.
Tanya Hofbauer, Partner, Financial
*Change has been announced but has not become law at the time of writing.