Below are additional highlights of Superannuation changes, with insights direct from Chapters 7 and 8 of the 2017/18 Australian Master Superannuation Guide, available now on the CCH Bookshop.
For an overview of the key changes, read our article Superannuation: Highlights of Changes Effective 1 July 2017.
CHAPTER 8 — SUPERANNUATION BENEFITS • TERMINATION PAYMENTS
- From 1 July 2017, individuals are not able to make an election to treat transition to retirement income streams as lump sums for income tax purposes
- Individuals whose superannuation benefits are transferred from one superannuation plan to another without their request or consent will not be disadvantaged by the application of the proportioning rule
- The low rate cap amount for the taxation of a superannuation member benefit is $200,000 for 2017/18 ($195,000 for 2016/17)
- The taxation of certain defined benefit pensions for members aged 60 or over has been changed from 1 July 2017
- The untaxed plan cap amount for the taxation of the element untaxed in the fund is $1.445m for 2017/18 ($1.415m for 2016/17)
- The tax offset for certain defined benefit pensions from an untaxed source may be limited for members aged 60 or over from 1 July 2017
- From 1 July 2017, the rate of tax on departing Australia superannuation payments to former working holiday makers is 65%
- From 1 July 2017, a superannuation death benefit paid as a lump sum may come within the definition of a roll-over superannuation benefit
- The ETP cap amount for the taxation of employment termination payments is $200,000 for 2017/18 ($195,000 for 2016/17).
CHAPTER 7 — TAXATION OF SUPERANNUATION FUNDS, ADFs AND PSTs
- The anti-detriment provision has been abolished from 1 July 2017
- The exemption for current pension income applies in respect of income streams in the retirement phase from 1 July 2017
- Transitional CGT relief for asset transfers to comply with transfer balance cap and changes to tax treatment of TRIS (LCG 2016/8)
- Guidelines to determine non-arm’s length income under limited recourse borrowing arrangements (TD 2016/16).
- The CGT roll-over relief in Div 311 will be extended to cover the mandatory transfers of members’ default balances to a MySuper product within the same fund structure
- The tax relief for merging superannuation funds in Div 310 will be extended until 1 July 2020.
Updated to 1 July 2017, the 2017/18 Australian Master Superannuation Guide – 21st Edition is essential for anyone advising on superannuation. Access 18 chapters of current, in-depth commentary and practical tools today!
The book explains the rules and answers your questions about superannuation law and practice in Australia and its numerous changes, through examples, tables, checklists, rates, thresholds and checklists.