On Wednesday 23 November 2016, the Federal Government's proposed changes to super rules were passed by Parliament. This means that from 1 July 2017, the amount you can put into super each year will be reduced – which could impact your retirement plans. So before the changes happen, it's a good idea to consider whether you should contribute a bit extra to your super.
Under the current rules, you can make up to $180,000 worth of after-tax or 'non-concessional' super contributions each year. But from 1 July 2017, this annual cap will be reduced to $100,000 – so this financial year is your last chance to make the most of the current contributions cap.
If you are aged under 65 (any time during a year), the bring-forward provisions will still allow you to bring forward up to three years of non-concessional contributions. So from 1 July 2017, you'll only be able to make a maximum of $300,000 in non-concessional contributions in a three-year period, compared to the $540,000 limit that currently applies.
What's more, if your super account has a balance of $1.6 million or more from 1 July 2017, you won't be able to make any further non-concessional contributions at all.
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If you're currently making contributions to super each year, it's important to know if these upcoming changes could affect your financial strategy and tax position.
With the changes taking effect from 1 July 2017, speak to us about how to make the most of the current super caps while you still can.