The Federal Budget Proposals 2016 vs Retirees

by


The Federal Budget Proposals vs Retirees

 Key Budget Proposals:

If you have more than $1.6 million in Retirement income streams such as allocated pensions

 

  • From 1 July 2017: The government will limit the amount of superannuation that can be transferred to tax-free retirement income streams to $1.6 million. Individuals with more than $1.6 million in tax-free retirement income streams on 1 July 2017 will be required to either withdraw the excess amount or transfer the excess back to an accumulation account. However, where the retirement income stream exceeds $1.6 million because of future earnings, the excess will not be required to be withdrawn or transferred.

 

If you have or commence a Transition to Retirement pension.

  • From 1 July 2017: Existing and new transition to retirement (TTR) pensions will have investment earnings taxed at up to 15 percent, in line with superannuation in accumulation accounts.

 

Positive super measure if you are over 65:

 

From 1 July 2017:If you are aged 65 to 74 you will no longer need to meet a work test to make a personal contribution or to receive a spouse contribution.

 

Note: This is not a complete list of all the budget proposals