Superannuation Changes – 1 July 2017
There are a number of changes to superannuation that will come into effect from 1 July 2017. The most important are as follows:
- The concessional contribution limit will be $25,000 (this has reduced from $30,000).
- The non-concessional contribution limit will be $100,000 with the 3-year bring forward reducing to $300,000 (Down from $180,000 and $540,000 respectively).
- The tax exemption for super fund earnings derived from assets supporting a transition-to-retirement pensions will be removed.
- The introduction of a $1.6 million limit on the amount of superannuation savings that can be transferred to a superannuation pension account (transfer cap). For those already holding a super pension account, with more than $1.6 million as at 1 July 2017, then some financial restructuring may be required. Any amount of superannuation above this cap will remain in the accumulation phase and taxed accordingly.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.