I needed the motivation to get the SMSF Podcast Show back underway and with the release of tranche 2 of the superannuation reform package, this provided an ideal opportunity to get my the podcast back up and running so that I can discuss the impact of the proposed superannuation measures and what you need to be thinking about in the lead up to the reforms from 1 July 2017.
The Government has released for consultation the second round of exposure draft legislation and explanatory material (light reading – over 200 pages) to implement the following super measures announced in the Federal Budget:
- Introduce a $1.6 million transfer balance cap and transitional arrangements for individuals who already have retirement phase balances above $1.6 million;
- Reform the taxation of concessional contributions through the lowering of the Division 293 threshold to $250,000;
- Reducing the concessional contribution cap to $25,000;
- Allowing catch-up concessional contributions for those with balances of less than $500,000 (deferred to 1 July 2018);
- Remove regulatory barrier to innovation in the creation of retirement income stream products;
- improve integrity of transition to retirement income streams;a dn
- removal of the anti-detriment provisions
In this podcast, I discuss at length the draft legislation impacting the $1.6 million transfer balance cap – I cover the member’s transfer balance account, including the new ‘debits’ and ‘credits’ on reporting of benefits, how reversionary pensions will operate, considerations for commutations, penalties for breaches of the transfer balance cap, segregation issues, CGT relief, replenishment debits and more…
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With more than 10,000 downloads of our podcasts so far, I’m looking forward to getting the weekly podcast back underway and discuss the topical issues impacting SMSFs.