Super Changes - Changed Again!

On Thursday 15 September 2016, the Government announced further changes to the Super Changes announced as part of the May 2016 Budget.

In summary the changes are:

• the annual non-concessional contribution cap will be $100,000 (currently $180,000).  This new limit will apply from 1 July 2017;
• the 3 year “bring forward” of non-concessional contributions is still permitted. However, the maximum bring forward amount for bring forward periods commencing 1 July 2017 will be $300,000, being three times the annual limit (currently $540,000);
• special rules will apply where the 3 year “bring forward period” straddles 1 July 2017- these are discussed in more detail below;
• once the super balance exceeds $1.6m, no further non-concessional contributions can be made;
• the ability to make catch up concessional contributions will now commence from 1 July 2018 (previously this measure was to commence from 1 July 2017); and
• the contributions work test for individuals age 65 to 75 will now be retained (this test was to have been abolished from 1 July 2017).