With the passing of the super legislation last week, you have just over seven months to take advantage of the old laws and get money into super. And due to the introduction of the transfer balance cap and changes to the transition to retirement pension, you may need to take other actions.

Here is a run-down of the five actions you may need to take before 1 July. If you want to view a comprehensive summary of the changes, Treasury has a good summary here.

1. Bring forward salary sacrifice arrangements

The concessional contribution cap will be reduced to $25,000 on 1 July, from the general cap of $30,000 or the higher amount of $35,000 for those who were 49 or older on 1 July 2016. If you are making salary sacrifice contributions, then you will need to review these from 1 July to make sure that you are under the new cap.

As this is the last year of the higher cap, the obvious strategy is to see whether you can utilize the full cap in 2016/17. If cash flow permits, accelerate salary sacrifice amounts this year, or if self- employed, make the full contribution prior to 30 June.

2. Make Non Concessional Contributions

The non-concessional cap reduces from $180,000 to $100,000. Non concessional contributions are your own personal contributions which you aren’t able to claim a tax deduction for. The other constraint is that if your total superannuation balance is over $1,600,000, you won’t be able to make any contribution at all. This is a new constraint to apply from 1 July 2017. Super balances will be measured each June 30 (i.e. your balance at 30 June 17 will determine whether you can make a non-concessional contribution in 2017/18).

Of course, to make a non-concessional contribution, you need to have the cash or assets that you can transfer in specie to your SMSF. If the latter, this must be done at market value and can’t include certain assets, such as a residential investment property (it can include shares, managed funds and business real property).

If you’re selling assets to generate cash, or transferring in specie, they will count as disposals for capital gains tax purposes. You may also have to pay stamp duty, for example, on business real property.

3. Access the bring forward rule

With the change in the non-concessional cap to $100,000, the limit under the ‘’bring forward” rule, which allows people under 65 during the financial year to make up to three years of non-concessional contributions in one year, will fall from $540,000 to $300,000. In cases where your super balance is between $1.4m and $1.6m, it will only be $200,000.

So, if you want to get a large amount into super, do it before 30 June. And as the limit applies per person, if you have a partner, then you can effectively get up to $1,080,000 in super. From 1 July, this will only be $600,000.

4. Remove any excess pension balances

The law relating to the transfer balance cap of $1.6m requires anyone who has more than $1.6m in the retirement phase of super (that is, in assets supporting the payment of the pension) to remove the excess, either by a lump sum withdrawal, or by rolling it back into the accumulation phase. The measurement date is 30 June 17.

Transitional relief has been provided for superannuants with balances between $1.6m and $1.7m – they will have until 31 December 2017 to bring their balance below the cap. If you have more than $1.7m, you are required to be compliant by 1 July.

From a tax point of view, it will usually make sense to roll the money back into the accumulation phase as the 15% tax rate is still concessional. However, if the retiree is not utilising their tax-free threshold on personal income of $18,200, then it may be advisable to withdraw the monies from super and invest it in their own personal name.

Capital gains tax relief is available to individuals who are required to comply with the new transfer balance cap. This won’t be needed if you are making a lump sum withdrawal (as the asset would still be in the 0% pension state when sold), but will be required if the funds are being rolled back into the accumulation phase. If the assets are segregated current pension assets, relief can be accessed and the cost base of the asset is re-set to the market value when compliance occurs. If the proportionate method is used, the cost base is re-set to market value on 30 June.

One new provision is that SMSFs with a member who has more than $1.6m in superannuation assets and who has some of this in the retirement phase won’t be able to use the segregated assets method from 1 July 17.

5. Check whether you want to keep your TRIS

The investment earnings of assets supporting transition to retirement income streams or pensions (TRIS) will be taxed at 15% from 1 July, rather than the current 0%. This removes the key financial incentive to have a TRIS, so recipients will need to consider one of three choices:

• keep the TRIS, in which case, continue to make minimum withdrawals of between 4% and 10% of the account balance each year;
• roll the TRIS back into the accumulation phase; or
• If circumstances allow, consider permanently retiring.

TRIS recipients will also be able to access CGT relief (as discussed above).

One new provision to apply from 1 July is that it will no longer be possible to treat an income payment from a TRIS as a lump sum withdrawal and access the tax-free low rate cap of $195,000. Lump sum withdrawals will still be possible, however they will not count as meeting the minimum payment standard.

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.