Superannuation 2016-17 The clock is ticking, superannuation changes effective 1 July 2017 Changes to the superannuation rules will come into play on 1 July this year. This is an opportunity for you to consider your circumstances and if it is right for you, you could make the most of the current rules that have larger contributions caps. The main changes include:

• The after-tax super contributions cap will reduce

Initially, the government planned to introduce a $500,000 lifetime cap on after-tax (non-concessional) super contributions, which it will no longer be implementing. Instead, an annual after-tax contributions cap of $100,000 will be put in place, replacing the current cap of $180,000. Those under age 65 will still have the ability to bring forward three years’ worth of after-tax super contributions, with a maximum of $300,000 under the bring-forward rules.

• The before-tax super contributions cap will be lowered

The before-tax (concessional) contributions cap will decrease from $30,000 (or $35,000 if you're turning 50 years of age or older this financial year) to $25,000 per year for everyone, irrespective of age.

• A pension transfer cap of $1.6m will be introduced

If you’re converting your super into a pension to derive an income in retirement you’ll be restricted to a limit of $1.6 million in your tax-free pension account, not including subsequent earnings. If you already have a balance above that, the excess will need to be placed back into the super accumulation phase, where earnings will be taxed at the concessional rate of 15%, or taken out of super completely.

• Transition to retirement pensions will lose their tax exemption

Investment earnings on super fund assets that support a pension are currently tax free. However, this will no longer apply to transition to retirement (TTR) income streams. Earnings on fund assets supporting a TTR income stream will be subject to the same maximum 15% tax rate that applies to accumulation funds. There are also some other changes that may also affect you. Please feel free to contact our office to speak to one of our Financial Planners today to discuss your personal situation.   General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.