Key updates for SMSF advisers and trustees

The following is an update for the SMSF industry that covers most important facts and figures for the 2012/13 financial year:

1. Concessional contribution limit: $25,000 per member:
Contribution cap $50,000 for members over the age of 50 with less than $500,000 super balance has been deferred until 1 July 2014.

2. Low income earners government contribution $500: The Government will provide a superannuation contribution of up to $500 annually for individuals on adjusted
taxable incomes of up to $37,000

3. Reduction of the maximum superannuation co-contribution from $1,000 to $500.

4. Refund of excess concessional contributions: From 1 July 2011, individuals who breach the concessional contributions cap by $10,000 or less can request the excess contributions be withdrawn from their super fund and refunded to them. Those excess concessional contributions will be taxed at the individual’s marginal tax rate.

5. Thirty per cent contributions tax for high-income earners: an additional 15 per cent tax to be paid on their deductible superannuation contributions for individuals earning more than $300 000

6. Minimum annual pension payment: 25% reduction for 2012/13 financial year.

7. Lump sum payment cap: $175,000 for 2012/13 financial year. The low rate cap amount is reduced by any amount previously applied to the low rate threshold.

8. CGT cap amount: $1,255,000: Under the CGT cap, you can during your lifetime exclude non-concessional super contributions from the non-concessional contributions cap up to the CGT cap amount. The CGT cap applies to all excluded CGT contributions.

9. Employment Termination Payments ( ETPS): ETP cap changes from1 July 2012. Two different caps can apply:
– The whole-of-income ETP cap is a non-indexed cap that applies to some ETPs and works in conjunction with the ETP cap.
– The ETP cap is the existing ETP cap that applies to all ETPs and has a threshold that is indexed each year.

10. SMSF ban on related party off-market transfers deferred to 1 July 2013: It will still be possible to make an in specie contribution of shares (or units) to an SMSF via an off-market share transfer until 30 June 2013