Tax Time 2023: Super Changes
Tax time 2023 brings a number of changes to superannuation. Here is a summary of what you need to know.
Super Guarantee Levy
From 1 July 2023 super savings will get a boost with the Super Guarantee Levy increasing from 10.5% to 11%.
Minimum pension amounts
From 1 July 2023 the minimum pension amounts are set to their pre-Covid amounts. The table below summarises the minimum amounts for the 2022/23 and 2023/24 financial years:
Transfer balance cap
The transfer balance cap is the maximum amount of super that can be transferred from accumulation phase to retirement phase. From 1 July 2023 the cap is set to rise from $1.7 million to $1.9 million.
Transfer Balance Account Reporting (TBAR)
From 1 July 2023 all SMSF’s will be required to report events that affect their members’ transfer balances on a quarterly basis regardless of their total super balance. The due date for the report is 28 days after the quarter end. For example events prior to September 2023 quarter are due to be reported by 28 October.
The following events need to be reported:
Super income streams (pensions) that have started in retirement phase, including reversionary income streams
Commutation, for example the withdrawal of a lump sum that isn’t an income stream payment
Income stream that stops being in retirement phase
Personal injury settlement
Limited recourse borrowing arrangement payments
Please contact your accountant asap should you have any of these transactions, so that the reporting deadlines can be met. Failure to lodge on time may result in the ATO issuing a penalty. For small entities this will be at the rate of 1 penalty unit for each 28 day period that the document is late up to a maximum of 5 penalty units. 1 penalty unit, at the time of writing was $275.
Downsizer contribution
From 1 January 2023 the eligibility age for making a downsizer contribution, a contribution of up to $300,000 as an individual or $600,000 as a couple on the sale of your home, dropped to 55.
Contributions caps
The super contributions caps remain unchanged for the 2022/23 and 2023/24 years at:
Concessional: $27,500
Non-concessional $110,000
You might also like to check out our blog Tax Time 2023: What individuals need to know and if you are a business owner you might like our blog on Tax Time 2023: What business owners need to know.
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Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by Accounting Heart Pty Ltd as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and / or other advice as may be appropriate having regard to their particular circumstances.