A reminder to clients of the changes to super in particular, contributions levels and the timing of contributions. If you are paying contributions they must be received by the fund prior to 30 June 2018 for them to be included as a contribution otherwise they will count to the next years contribution cap. Tax deductions can be claimed for contributions you personally make to your super in your tax return. Contact your adviser at Evolution if you wish to take advantage of this.
1. Concessional Contributions cap
As from 1 July 2017 all tax deductible contributions; employer; salary sacrifice and member contributions that you are claiming a tax deduction for must not exceed $25,000.
2. Division 293 tax
In the past Division 293 tax was paid on concessional contributions where the individual’s income threshold exceeded $300,000. From the 1 July 2017 the income threshold has reduced to $250,000.
3. Non-Concessional Cap
The balance you have in super at 30 June each year will impact the non-concessional contributions you can make the following year into super. For example;
Please note that the contribution eligibility rules still apply. Please contact your Evolution Adviser for further details.
4.Transitional Retirement Income Streams (TRISs)
In the past, the income supporting these TRIS’s was exempt from tax. From 1 July 2017 this income will be taxed at 15%. The ATO has also stated that a TRIS cannot convert automatically to an account based pension. We are watching this space and will let you know if anything needs to be done.
Given the changes in super it may be a good time to meet with your Evolution Adviser and review your Estate plan and retirement plans to ensure your goals are still on track.
Downsizer Superannuation Contribution
Prior to Christmas, legislation was passed that effectively introduced a new category of superannuation contribution – the downsizer superannuation contribution (DSC). The DSC is designed to encourage older Australians to vacate larger properties for smaller, easier to maintain homes while taking advantage of the opportunity to contribute more to their superannuation funds. The DSC will not count towards contributions caps or be affected by the total superannuation balance test in the year the contribution is made. It will, however, count towards the total superannuation balance and transfer balance cap (currently $1.6 million).
Talk to your Evolution adviser about your eligibility and the suitability of DSC for your financial position.
SMSFs and franking credits
There has been significant media coverage recently regarding the Australian Labor Party’s proposed policy to stop SMSFs from receiving tax refunds for franking credits received from Australian company dividends. The Self Managed Super Funds Association strongly opposes the proposal, CEO John Maroney saying that it “unfairly targets” one sector of the community who have been diligent in saving to be more self-sufficient in retirement. Visit our website www.evolutionadvisers.com.au to read more on the potential effects that this proposal will have on SMSFs.
Waves of Support
In February, Evolution Advisers presented the inaugural Evolution Charity Cup as part of Newcastle’s Surfest which raised almost $90,000 for the Mark Hughes Foundation.
The concept behind the event was that 19 local business teams participated not only in the tag team style surfing event, but each team committed to undertake fundraising for the Mark Hughes Foundation.
Evolution Director Darren Glover says the Evolution Charity Cup is an opportunity for combining business and pleasure with the added bonus of supporting a very worthwhile cause.
The event was taken out by the Sanbah Surf Shop team (Rhys Smith, Jesse Adam, Teale Vanner & Madi Pool) over Arcbuild, Maitland Toyota and KCE Gold in the Final.
A stiff nor’easter made conditions difficult for competitors but that didn’t dampen the enthusiasm and community spirit on the day, which saw Kentan Machinery win the highest fundraiser award and the opportunity to have legend Tom Carroll mentor their team. Kentan raised a massive $14,040.11.
To view photos and video of the day, please visit our website www.evolutionadvisers.com.au
Evolution was also proud to have contributed to the crowd funding campaign for the 2018 Surfest Women’s Pro ensuring that this deserving world class event keeps it’s place on the international surfing calendar.