Technical

A rundown of the big super changes

April 2017

Mark Gleeson discusses how advisers can help their clients prepare for the key superannuation changes ahead.

Wide-reaching changes to superannuation will take effect from July 1, 2017, and there are some things financial advisers can do this financial year to help their clients get a headstart, says ANZ technical services manager Mark Gleeson.

One of the most significant changes is the large drop in non-concessional contributions caps: beginning July 1, the three-year roll-over cap will fall from $540,000 to $300,000 and the one-year limit on contributions will drop from $180,000 to $100,000.

“There is the opportunity before 30th of June 2017 to make non-concessional contributions … before those caps drop remarkably,” Gleeson says.

The concessional contributions cap is also set to drop and advisers have until July 1 to take advantage of the current cap, he says.

But it’s not all about new limits. The removal of the ’10 per cent test’ will mean the vast majority of employees will be able to make personal tax-deductible super contributions, and advisers should consider these compared with current salary-sacrifice arrangements.

Clients will also be able to carry forward unused concessional contributions for up to five years if they have less than half a million dollars in their total superannuation holdings.

Gleeson recommends a number of strategies for advisers to help their clients make the best of the new environment, such as contributions splitting for couples and considering non-superannuation options such as unit trust investments or bonds.