Contributions / Federal Budget / SMSF

SMSF Q&A: Federal Budget and proposed changes to contributions

 

Much of the focus from the Federal Budget has been on the Government’s announcement to introduce a lifetime cap on non-concessional contributions, back-dated to take effect from 1 July 2007.  Whilst this decision has delivered a lot of angst, some of the more positive changes to contributions have been lost in all the ‘noise’ surrounding the proposed changes to non-concessional contributions.

In this week’s Facebook ‘live’ SMSF Q&A session, I answer a range of questions about the measures announced in the Federal Budget’s on contributions, including:

  • Reduction in the concessional contribution cap to $25,000 from 1 July 2017;
  • Rolling 5 year concessional contribution caps for members with account balances under $500,000 from 1 July 2017;
  • Greater flexibility in the ability to contribute to superannuation from 1 July 2017;
  • Introduction of lifetime non-concessional contribution cap of $500,000 from budget night (7.30pm, 3 May 2016);
  • A reduction in the ‘income’ threshold to $250,000 for Div 293 tax;
  • Introduction of a Low Income Super Tax Offset for individuals with adjusted taxable income under $37,000

Got as question?

Got any follow-up questions to ask from this video?  You can add as a comment below or ask via our Facebook page, http://www.facebook.com/thesmsfacademy

What about a question you would like answered for future SMSF Q&A live events?  You can send to me at ‘Dunno? Ask me a question!’

Each week our Facebook ‘live’ session talks about a current issue impacting the self-managed super fund sector, from technical topics, through to technology, advice and more…  Join me ‘live’ at 4.00pm each Monday.

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