- Check investments and insurance policies are held in the correct name.
- Check that any insurance held via your SMSF is still appropriate.
The ATO had previously advised an amnesty was in place for any employers who had unpaid superannuation obligations.
Please be aware this amnesty ends on 7 September 2020, so if you require any help with this please let us know now.
From 1 July 2020, those aged under 67 can make non-concessional contributions up to $100,000 without meeting a work test if their total super balances at 30/06/2020 are less than $1.6M. This was previously restricted to those under 65. Those aged 67 to 74 can also do this, but only if they meet the work test – 40 hrs. work in 30 consecutive days.
Consider triggering the bring forward rule to accelerate contribution. Currently those under 65 (not 67) can contribute up to $300,000 (they must have a balance under $1.4M and not already triggered this in the past two years). For balances between $1.4 M and $1.5 M, you can bring forward up to $200,000. For balances between $1.5M and $1.6M you cannot trigger the bring forward.
The discrepancy between age 65 & 67 is a quirk. Both rules will probably eventually be "under age 67" in 2020-21 but the Government has not yet passed the legislation. If you are interested in this strategy please wait for a further update.
Those under 67 (not 65) can make concessional contributions of up to$25,000. This is not restricted by your super balance.
You can carry forward unused concessional contributions for a rolling five years (starting 2018-19) if your total super balance is less than $500,000.
Couples with unequal super balances can spit concessional contributions from the higher balance member to the lower balance one. This can be useful for members approaching $1.6 million.
Those aged 65 or over selling a home lived in for at least 10 years can potentially make a $300,000 ($600,000 for a couple) downsizer contribution. This opportunity has no work test requirement or balance limit.
Those selling a small business can potentially contribute up to $1,565,000 to super in 2020-21. It is a complex area, so please seek our advice.
When withdrawing consider using the 50% minimum pension reduction, which extends into 2020-21.
If you need to withdraw more, consider withdrawing from your accumulation account (if you have one) or from your pension account as a lump sum commutation (which reduces your transfer balance account).
If you are nearing 60, 65, 67 or 75 plan for opportunities that may be starting or ending.
At 65 & 66, anyone can withdraw some of their super regardless of whether they are working or not. This has always been the case.
They can now also make new contributions, and thanks to these new rules, they do not need to be working.
This means that at 65 & 66 anyone can withdraw some of their super and put it straight back again, without worrying about work tests or retirement tests – neither apply. There are times when it can make a lot of sense.
- Provides funds for concessional contributions including unused concessional and reserving strategies.
- Provides funds for non-concessional contributions. This changes the tax configuration potentially making any super passed when a parent dies, tax free to their adult children rather than taxed at 17%.
Anyone aged between 65 & 67 who sells their home can take advantages potentially of the home downsizer and the traditional 3 year bring forward non-concessional contribution which could allow couples to contribute up to $1.2M into super depending on the timing of the contribution and on the size of their super balances.
The new rules present some interesting opportunities.