New Regime - Fair and Sustainable Super

The legislation to implement the new Fair and Sustainable Super  -  Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 has now been enacted.  The Fair and Sustainable Super changes are the most significant changes in Superannuation since the Costello changes of 2007.  In particular, these changes will impact two areas of superannuation:  contributions and retirement income planning.  In this issue of SUPERCentral News, issues surrounding contribution planning will be considered.  The next issue of SUPERCentral News will consider retirement income planning.

While the intent of this issue of SUPERCentral News is to explain the new contribution caps, the SIS contributions acceptance rules and the tax rules permitting bring-forward of contributions must, independently of whether the contribution cap rules have been met, still be satisfied.  The main SIS contribution acceptance rules are the gainful employment test (for contributions made after age 65) and the age 75 limit to contributions (in general no contributions can be made after age 75).  The main requirement for the bring-forward of contributions is that the member must be under age 65 at any time during the financial year in which the bring-forward is triggered.