2017 Tax Planning Checklist: Superannuation Funds

Contributions to Superannuation Funds

Contributions to superannuation funds are taxed at 15% of the contribution. Earnings made in a superannuation fund are also taxed at 15%.

For fund members sixty years of age and over, who are drawing an account based pension, payments from the superannuation fund are, in general, tax free.

Income streams used to fund those pensions are also tax free.

However, account based pensions in excess of $1.6M, must be commuted to the accumulation phase from 30 June 2017. This means that only income streams to support the maximum $1.6M cap will continue to be tax free. Further income streams which support a transition to retirement pension will now be subject to income tax at 15% from 1 July 2017.

For taxpayers with Adjusted Taxable Income (ATI) over $300,000 superannuation contributions are taxed at 30%. This threshold reduces to $250,000 form 1 July 2017.