As from 27 September 2016, the current Budget 2016 superannuation proposals include:
- the introduction of a transfer balance cap of $1.6 million on amounts into the tax-free retirement (pension) phase from 1 July 2017.
- after commencement, if individuals already in retirement as at 1 July 2017 retain balances in excess of the $1.6 million cap and do not transfer the excess out of the retirement phase account, an excess transfer balance tax will be payable;
- for a person who has not previously been liable to pay excess transfer balance tax—15% of the person’s annualised notional earnings on excess transfer balance for the financial year; or
- for a person who has previously been liable to pay excess transfer balance tax—30% of the person’s annualised notional earnings on excess transfer balance for the financial year.
- introduction of commensurate measures to defined benefit arrangements;
- removal of the tax exemption on earnings which support Transition to Retirement Income (pension) streams.
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[…] Save Our Super believes that grandfather clauses must be provided to protect all significantly affected Australians from a number of the remaining Budget 2016 superannuation proposals. […]
[…] Save Our Super believes that grandfather clauses must be provided to protect all significantly affected Australians from a number of the remaining Budget 2016 superannuation proposals. […]