The SMSF Association is urging SMSF professionals to quickly get across the details of the recently passed superannuation legislation.
Jordan George, SMSF Association Head of Policy, said it’s “imperative” that SMSF professionals understand the changes so they can advise their clients accordingly.
“The introduction of the $1.6 million cap on tax-free retirement assets involves new and complex principles that will certainly affect some SMSF trustees,” said Mr George.
“It includes complicated transitional CGT (capital gains tax) relief and the need to re-evaluate strategies around reversionary pensions, small business CGT contributions and how the operation of the cap will affect existing income streams.”
“In addition, changes to the concessional and non-concessional contribution caps mean that SMSF specialists should be looking to maximise the current rules before lower caps take effect on 1 July 2017.”
“Remember, too, complex transitional rules apply to fund members who may have triggered the non-concessional contribution bring-forward rule, or are approaching the $1.6 million superannuation balance that limits NCCs from 1 July 2017.”
Mr George also said that advisors will need to assist clients with exisiting Transition to Retirement Pensions, given the changes to how income in super funds relating to such pensions changes from 1 July 2017.
“These advice needs paint a complicated operating environment for SMSF specialists, and it is important that they understand the legislation and its strategic implications for clients,” he said.