Your quick guide to the changes to super
22 August 2017
There have been a number of recent legislation changes to your super and/or pension.
Click on the heading below to find out more about the changes and how they may affect your super investment.
Concessional or pre-tax contributions
Up until 30 June 2017 From 1 July 2017 Cap of $30,000 per annum, rising to $35,000 if you’re aged 50 and over. Cap of $25,000 per annum applies to everyone regardless of your age. No provision to catch up with extra contributions. From 1 July 2018, if you have less than $500,000 in super, you can make ‘catch-up’ contributions by carrying forward any unused cap amounts up to a period of five years. Low income superannuation contribution (LISC) provided a tax rebate of up to $500 if you earn less than $37,000 per annum. Low income super tax offset (LISTO) replaced the LISC and also provides a tax rebate of up to $500 if you earn less than $37,000 per annum. Tax on contributions increased from 15% to 30% when you earn $300,000 or more. Tax on contributions increases from 15% to 30% when you earn $250,000 or more.
Non-concessional or after-tax contributions
Up until 30 June 2017 From 1 July 2017 Cap of $180,000 per annum for everyone regardless of your age. Cap of $100,000 per annum for everyone regardless of your age. ‘Bring forward’ rule meant if you were under the age of 65, you could make three years of contributions in one year, up to $540,000. ‘Bring forward’ rule means you can make three years of contributions in one year, up to $300,000 depending on your total super balance. Tax offset for any spouse contributions if your spouse earned less than $13,800. Tax offset for any spouse contributions if your spouse earns less than $40,000.
Up until 30 June 2017 From 1 July 2017 Tax-free earnings for transition to retirement pension accounts.
Tax-free pension payments after you turned 60 years of age.
Tax of up to 15% on earnings for transition to retirement pension accounts.
Still receive tax-free pension payments after you turn 60 years of age.
No limit on the total amount you could transfer into an account-based pension plan. Limit of $1.6 million that you can transfer into an account-based pension plan.
Retirees with more than $1.6 million in an account-based pension plan must transfer or withdraw excess funds.
Additional tax applied to defined benefit pensions in excess of $100,000 per annum.
New disclosure regulations are changing the way we show fees and costs
New regulations from Australian Securities Investments Commission (ASIC) means that all super funds will provide additional disclosure on fees and costs associated with your investment options. These changes are designed to give greater transparency and consistency across the industry for members of superannuation funds.
What is the change?
We will be providing additional items in the fees and costs shown to you.
While these are not incurred directly by you, these fees and costs are levied on to, and by, the service providers we engage in the management of your investments.
There are no new fees or costs – this disclosure simply gives a deeper layer of costs associated with our service providers.
More details and new fee tables will be included in the Product Disclosure Statement available from 30 September 2017.
Would you like more information?
ASIC has more detailed information in its Regulatory Guide 97 – Disclosing fees and costs in PDSs and periodic statements.
If you think you may need financial advice, you can request an appointment online or call us on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday.