The Government has released their guidelines on the super changes confirmed in the 2017 Budget, on 15 June 2017 for changes starting 1 July 2017.  We wrote about aspects of these changes in our post Unintended Consequences.

As we are not financial planners or accountants, all we can suggest is “inform yourself” and seek advice on your personal situation. Do not simply leave this to work itself out!

From the letter I received, I have copied the full URLs below for reference, which I hope will be of value to you.

Sometimes I wish I was not so cynical, but I can only say that the most value from these changes will be to financial advisers and accountants, and good luck to them.

For many, these changes will lead to a further imbroglio now and into the future. The benefits of this move appear to have little better than current budget deficit effects leaving our superannuation as a cash cow for future pillaging/tampering by government.

I have questions:

  1. How can these changes possibly be aimed at encouraging people to stay well away from claiming the aged pension? (which will create a future budgetary problem)
  2. Why would it matter how much was in super if (with appropriate grandfathering provisions) it was taxed on the way out – See Unintended Consequences ?
  3. Have we seen modelling on what affect these changes will have on the Superannuation industry in future?
  4. Can’t we just simplify the system instead of forcing people to engage advisory services to understand their own affairs?

So many questions, so few real answers.

Transfer balance cap

https://www.ato.gov.au/individuals/super/accessing-your-super/transfer-balance-cap/

New transfer balance cap for retirement phase accounts

https://www.ato.gov.au/individuals/super/super-changes/New-transfer-balance-cap-for-retirement-phase-accounts/

New transfer balance cap – defined benefits

https://www.ato.gov.au/Individuals/Super/Super-changes/New-transfer-balance-cap-for-retirement-phase-accounts/New-transfer-balance-cap—defined-benefits/

and also see New transfer balance cap – defined benefits