White Paper: A Consideration of Some of the ‘Fair and Sustainable Superannuation’ Reforms

September 28, 2017by Michael Roberts0

Download a free white paper examining the recently-legislated superannuation changes (originally announced in the 2016 Federal Budget), known as ‘Fair and Sustainable Superannuation Reform Package.

It is reported to be a package of some of the most significant changes to superannuation in decades.

In particular, some of the more significant changes are:

  • Introduction of a cap on superannuation income streams
  • CGT treatment of assets supporting superannuation income streams
  • Removal of tax exemption for transition-to-retirement income streams (TRISs)
  • Reduction in concessional and non-concessional contributions caps
  • Introduction of concessional contributions catch-up
  • Amendments to superannuation contributions (eg Low Income Super Contribution and Spouse Contributions)
  • Increase tax on concessional super contributions for high income earners
  • Expansion of tax-deductibility of super contributions
  • Removal of anti-detriment provisions

The issues examined in this paper are:

  • How does the transfer balance account (TBA) work?
  • How do debits and credits arise in your transfer balance account?
  • What is the effect of a commutation on your TBA?
  • What is the effect on your TBA if your superannuation income stream fails to comply?
  • How is a temporary breach of the TBC different to a normal breach?
  • What is an “excess transfer balance” (ETB)?
  • What are the transitional provisions in relation to an “excess transfer balance” (ETB)?
  • How is excess transfer balance tax (ETBT) calculated?
  • How are excess transfer balance determinations issued?
  • What is a default commutation notice?
  • Can you elect which income stream is to be commuted?
  • What is a commutation authority?
  • What are the changes to Concessional and Non-concessional Contributions?
  • How do the Carry Forward Provisions work?


Michael Roberts

Michael is a Director and Responsible Officer of Bailey Roberts Group. Michael brings to the Group twenty-nine years of experience in Financial Services and qualifications in Financial Planning, Business Management and Tax Law.

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