Whether you’re looking at investing into Self Managed Super (SMSF) for the first time or have your own established fund, you should be aware of the potential new opportunities available under the latest round of superannuation legislation changes. After all, didn’t you start an SMSF to gain greater control over your retirement and future?
Under the most recent changes to legislation, the ATO have advised that the excess contributions cap for over 60’s is now $35,000, starting 1 July 2013. For anyone under 60 the cap is still $25,000. However from 1 July 2014, the excess contributions cap will increase to $35,000 for anyone over 50 years of age. We believe there is incredible potential tax saving strategies with these new ‘caps’ and legislation that should be taken advantage of. This is especially the case if you’re considering salary sacrificing into super.
The changes to pensions also come into affect from 1 January 2015. These changes could greatly affect your ability to access the age pension or even reduce the amount you could be eligible for. If pensions from your SMSF aren’t setup correctly before 1 January, then this can limit any pension receivable under the age pension. Therefore we recommend you consider reviewing any existing pensions or starting new pensions prior to 1 January 2015.
Another recently new concept is that of ‘Super Wills’. These are wills taken out within an SMSF (and are separate to your normal will) with the express purpose of determining how the assets within your SMSF are to be distributed in the event of your death. Our legal experts have advised that ‘Super Wills’ are a better way to ensure your assets within super are distributed in accordance with your wishes.
If you’d like further information on any of the above strategies and legislation, please feel free to contact our office.
Kim Jay CA – Director