Shedding light on the Superannuation Changes
Historical article — 2016. The contribution caps and balance figures below describe an earlier reform and are not current limits. For background only. Check current guidance before acting. Explore Regans SMSF support.
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.
Comments