July to bring new super changes

July to bring new super changes

Superannuation & Retirement Income
July 1 bring big changes to the superannuation system.

July 1 bring big changes to the superannuation system.

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A RAFT of changes to Australia's superannuation system come into effect from July 1, 2017.

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A RAFT of changes to Australia's superannuation system come into effect from July 1, 2017.

They include a new cap on the amount you can transfer from your accumulated super into a pension account, and changes to how transition to retirement income streams are taxed.

From July 1, there will be a limit on how much of your super you can transfer from your accumulation super account to a tax-free "retirement phase" account to receive an account-based pension income.

This is known as the super transfer balance gap.

As well, from July 1 the government will remove the tax-exempt status of earnings from assets that support a transition to retirement income stream.

Earnings from assets supporting a transition to retirement income stream will be taxed at 15 per cent regardless of the date the stream began.

More details www.ato.gov.au/superchanges

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