Revised super proposals

on November 16, 2016 General with 0 comments

super-reform

The Government has announced some changes to the superannuation proposals originally announced in the May 2016 Federal Budget.

The Coalition’s proposal is to reduce the existing annual non-concessional (after-tax) contributions cap from $180,000 per year to $100,000 per year. Australians who are under 65 years of age will continue to be able to use the three-year bring forward rule (bring forward three years’ worth of non-concessional contributions ($300,000) from 1 July 2017. The new suggestion replaces the original proposal for a $500,000 lifetime cap on non-concessional contributions made since 2007 announced in the May 2016 Federal Budget, which was opposed by parts of the super industry.

In the meantime, Australians can continue to put $540,000 into their super accounts between now and 1 July 2017. 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 revised proposal is said to allow more individuals to build a superannuation balance cap to attain a $1.6 million pension balance cap in the retirement phase. To offset the full cost of changes to nonconcessional
contribution arrangements, the start date for catch-up concessional contributions will be deferred by 12 months to 1 July 2018. In addition, the Treasurer has reversed the Budget Measure to harmonise contribution rules for people aged between 65 and 74; providing they satisfy the work test they will still be able to make additional super contributions.

Start to take control of your Super and call Lee and Lee today. We are here to help. We are SMSF Specialist Accountant and members of the SMSF Association.