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Shedding light on the Superannuation Changes

October 23, 2016

October is fast becoming the month of government back-flips.  It started with Mike Baird reversing his decision to ban greyhound racing in NSW, now the federal government has done a back-flip on the non-concessional superannuation lifetime cap of $500,000.  Lets go over the changes.

 

 

 

The government has decided to scale back the non-concessional contribution per year to $100,000 instead of $180,000. 

 

Those who choose to use the bring forward rules will be able to contribute in a year a total of $300,000.  A sharp drop from $580,000 under the previous rules.

 

Non-concessional contributions are those made from after-tax dollars.

 

These type of contributions to super will also be only available to those with a balance under 1.6 million and will start to take effect from July 1 2017.

 

You should always be sure to seek advice when making any choices of this nature, this article is general in nature and does not take into account your circumstances.

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