Now is a good time to be considering what to before 30 June. What follows are some ideas:

1. Maximise Your Concessional Contributions

From 1 July 2017, the concessional contribution caps will fall to $25,000 for everyone. These are significant drops on the current amounts ($35,000 for those aged over 49 each 30 June and $30,000 for everyone else).

Remember that this applies to personal contributions that you can claim as a tax deduction and to all employer contributions, including salary sacrifice.

There are couple of points to note here – firstly, employers which borrow money to make super contributions can claim a tax deduction for their borrowing costs; secondly, you might be able to make concessional contributions in advance and claim a tax deduction for those contributions this year. This second point can be complex to implement and I would encourage you to read this article that describes how this works as well as receive some good advice from someone experienced in this area.

You should carefully consider your salary sacrifice arrangements and, if possible, look to rejig your circumstances to take into account the lower limit before it commences.

2. Split Contributions With Your Spouse

Effectively, this means taking your taxable contributions and moving them to your spouse’s super account. Obviously it means your spouse’s account increases whilst yours doesn’t increase as quickly. There is a simple ATO form to complete to action this item, which your SMSF administrator can help you complete, if you have any questions.

I have been a proponent of this strategy for many years – I have personally done this for at least the last five years – primarily because I have seen little risk in using it and it potentially protects you against adverse government super and tax changes. It gives me no joy that I was right.

This strategy is particularly important for those likely to be impacted by the new $1.6 million pension limit (see below).

3. Transition to Retirement Pensions

As you would be aware from 1 July 2017, the government intends to remove the tax exemption for the earnings on assets supporting these pensions. This will mean that the earnings will be taxed at 15%.

If you’re younger than 60, then your TtR income will be taxed at your marginal rate, less a 15% tax offset.

If you’re over 60, then your TtR income is paid to you tax free.

When you include the 15% tax within the super fund, some people will find TtR pensions are no longer tax effective.

As a result, some will want to permanently retire.

Others will want to cease the pension and continue to work. If you’re in this category then one option, for the 2016 and 2017 financial years, is to consider taking more income from these pensions than you might require so that it can be available, as income, for the 2018 financial year and potentially beyond. The idea is that you might be able to continue with your current strategy for some future years by taking more income now. Obviously you will need to do some careful analysis to work out what is best for you.

4. Non-Concessional (after-tax) Contributions – NCCs

This is a very tricky area. At present, the government wants to limit new non-concessional contributions to $500,000 and have all contributions made after June 2007 counted under this rule. If you were lucky enough to make NCCs of more than $500,000 before 3 May 2016, then you won’t have to remove these contributions.

One option is to follow the Governments requirements because you would prefer to limit the potential for any hassle because contributions that breach these new rules will have to be taken out of the system.

Another option is to make contributions based on the current rules because you believe the government will have to water down its new policy. If we weren’t caught in an election campaign, I suspect this might be a reasonably safe bet. In any event this is only a good idea if you accept that if the government does formalise this new rule as announced, then you might have to take the excess contribution out of the system or pay a penalty tax.

5. $1.6 million Pension Limit

This is a per-person limit and means that a couple can have a combined $3.2 million in pensions. From my discussions with many financial planners and accountants, this will probably generate adequate income for most people.

If you currently have pension account balances of more than $1.6 million, then you need to be planning to implement a strategy to reduce your pension balance by July 2017.

Where possible, you should consider rejigging the cost base of your investments. For example, suppose your pension has XYZ company shares in it and they were originally bought for $1 per share. They’re currently trading at $10 per share. You have no desire to sell out of this company for the foreseeable future. At present, your pension fund can sell these shares and buy them back for $10 per share.

In this way, if those assets are then transferred back to the 15% tax phase, you will pay less CGT in the future because your cost base is lower, which means less tax to pay if they have to be sold in a taxed environment.

One option is to take money out of your pension and then contribute that money to your spouse’s name – this might be a good idea if your spouse can make super contributions and it won’t cause excess contribution cap problems for your spouse.

6. If you or your spouse has income under $37,000

There are two potential changes:

a. Right now, you might be eligible to have the super contributions tax – paid on employer contributions and personal contributions claimed as a tax deduction – refunded to your super scheme. This is currently called a Low Income Super Contribution and is due to cease before July 2019.

As part of the Budget, the Government has said this refund idea will continue but from 1 July 2017 will be called a Low Income Super Tax Offset.

This tax refund is sent automatically to your fund so there is nothing for you to do. One option, if you have the cashflow, is to try and maximise your concessional contributions this year and ensure your income is below the $37,000 threshold. The definition on income here including a number of items, such as your taxable income, reportable fringe benefits, some foreign income, tax free government pensions or other benefits and net investment losses.

The maximum tax refund paid here is $500.

b. Spouse super contribution tax offset – this is only available if your spouse earns less than $13,800 but from 1 July 2017, the income threshold will be increased to $37,000. It will pay a refund of 18% of contributions. The maximum refund is $540, meaning that it is payable on the first $3,000 of contributions if income is less than $10,800. A reduced maximum rebate is paid when income is between $10,800 and $13,800. It is only paid when a contribution is made for a spouse.

This is one concession you might want to remember if you’re wanting to split benefits with your spouse. This is paid based on assessable income for income tax purposes – yes, this is a different definition of income to that mentioned just above.

If your spouse has low income then this can provide a small added incentive which you might like to access.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.