The Government announced on 15 September 2016, amendments to the 2016-17 Budget for the following superannuation measures:
1. The $500,000 lifetime non-concessional cap announced in the budget will be replaced by a new measure to instead reduce the existing non-concessional (after-tax) contributions cap of $180,000 per year down to $100,000 per year. The existing “bring forward” rule will also remain, which allows individuals aged under 65 to bring forward three years of non-concessional contributions.
2. Individuals with a superannuation balance of more than $1.6 million will no longer be eligible to make non-concessional contributions from 1 July 2017. This limit will be tied and indexed to the transfer balance cap.
3. The proposed abolishment of the work test from 1 July 2017 for people aged between 65 and 74 will not proceed. This means the current restrictions on such individuals from making superannuation contributions will remain.
4. The proposed catch-up concessional superannuation contributions measure will be deferred by 12 months to commence on 1 July 2018. This measure allowed individuals to make additional concessional contributions where they have not reached their cap in previous years.
You can read the full Government media release here. If, after reading this you would like more information, please call your Manager on (07) 3863 9444.