An opportunity exists prior to 1 July 2017 for some UK Pension Transfers given the recent Australian Super Changes. On 15 September 2016 the Government announced some significant changes to the superannuation proposals previously announced on 3rd May 2016 Budget night. The following opportunities arise before 1 July 2017 (Please Note: UK Pension Transfers are currently taking 6-9 months from beginning to end):
Clients who thought they would not be able to make any more non-concessional contributions (having already exceeded $500,000 in non-concessional contributions since 1 July 2007) will now be able to make some additional contributions.
Clients who have superannuation balances in excess of $1.6 million already will have a one-off opportunity to contribute this financial year as the $1.6 million cut off only applies for contributions from 1 July 2017.
If a client under age 65 (i.e. age 64 or below as at 1.7.16) hasn’t triggered the bring-forward rules, they could do so this year and contribute up to $540,000 this financial year. This may be a real opportunity for higher net worth clients who were concerned they wouldn’t be able to make any further contributions.
Furthermore, from 1 July 2017, based on the current information available, if a client has less than $1.6M in super as at the prior 30 June, but has more than $1.5M, they can still contribute a total amount of $100,000 as a non-concessional contribution (not just the shortfall to the $1.6M total).
For a detailed summary of the changes – click here.
Please Note: Current lead times for UK pension transfers are 6-9 months, therefore, those wishing to take advantage of this window of opportunity up to 1 July 2017 (using UK pension transfer monies) should bear these timescales in mind.