Following on from Part one of Superannuation Changes -
Your questions and our answers, below we explore some other key questions regarding Capital Gains Tax Relief, Estate Planning and Contribution Issues.
View Part 1 of Superannuation Changes.
Part 2: Other key areas
Capital Gains Tax Relief
1. Do I need to sell assets in my SMSF before 30 June 2017 to get capital gains tax relief?
No. The step up in the cost base of the assets of the superannuation fund can be chosen to be applied, even without selling assets. There are several traps with choosing this relief and careful consideration should be given to how this relief is applied.
2. Does CGT relief apply where I have a Transition to Retirement Income Stream?
Yes. As a transition to retirement income stream will no longer be considered a retirement product, there may be an ability to adjust the cost base of your assets to their current market value
1. Can my spouse continue to receive my pension on my death?
A spouse can continue to receive a reversionary pension on death and this will not count to the $1.6m cap for 12 months from the date of death. After 12 months the reversionary pension will count to the surviving spouses $1.6m cap which may breach the cap. A review of how superannuation benefits are dealt with in death should be undertaken with the changes coming.
1. I am 52 years old with $1.8m in my SMSF. Are there any immediate impacts to me?
From 1 July 2017 the concessional, or tax deductible, contribution limit will reduce from $35,000 to $25,000. Further, based on that fact you have more than $1.6m in superannuation no non-concessional, or after tax, contributions can be made to superannuation.
2. For the purposes of contributions when is the $1.6m calculated?
This is calculated as the balance of all superannuation accounts as at 30 June in the previous financial year. For the 2017/18 financial year this will be the superannuation balance at 30 June 2017.