Industry groups have welcomed the Government’s move to significantly alter ts plan to overhaul superannuation. The key change is to remove the planned $500,000 lifetime non-concessional cap on fund balances, and replace it with an annual cap of $100,000
“These measures make the superannuation system even fairer, even more flexible and even more sustainable.” Scott Morrison
What are the proposed changes?
• The planned $500,000 lifetime non-concessional cap on fund balances, backdated to 2007 will be removed
• The annual non-concessional contributions cap will be reduced to $100,000 a year from $180,000.
• Members under 65 can bring forward up to three years ($300k) of non-concessional contributions
• No non-concessional contributions allowed for members with superannuation account balance of more than $1.6 million after July 1, 2017.
• The work test for people aged 65-74 will remain in place
• Ability to make “catch-up” concessional contributions delayed until July 1, 2018.
How it works?
You can contribute $100,000 non concessional and $25,000 concessional to your superannuation until your account balance reaches $1.6 million. You can bring forward up to 3 years non concessional contributions (up to $300,000) in any one year.
For more information contact SMSF Engine