Super savings

WINTER is here, the perfect time to rug up and plan a mid-year break to the snow or to warmer climates. But before you head off, June is also the month to take advantage of any last minute opportunities to reduce your tax bill before the end of the financial year. With new regulations set to become part of Australian superannuation law, some of the rules around super contributions and the tax breaks available will change from 1 July 2017 — the biggest superannuation shake-up in 10 years. There are some key decisions to be made that can have a long-lasting effect on your retirement nest egg. These may include: Maximising concessional

contributions prior to the reduction in these thresholds from 1 July 1 2017. This may be achieved through salary sacrifice measures or personal concessional super contributions. Maximising non-concessional contributions utilising the existing bring forward thresholds. Consider that there will be a reduction in the annual non-concessional super contributions limit from $180,000 to $100,000, which will result in a reduction from $540,000 to $300,000 using the bring forward rule. Review existing transition to

retirement pensions. Consider the impact of the loss of tax-free status from 1 July 2017. Where spouses have unequal member balances and one is approaching or exceeding $1.6 million, identify whether a recontributing strategy can be used to equalise your member balances.