20 Dec 2016
New rules on Non-Concessional Contributions: Superannuation Reform
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
As the year comes to an end we just wanted to remind you that from 1 July 2017 the non-concessional (after tax) contribution limit reduces from $180,000 year to $100,000 per financial year and the 3 year bring forward provision will also reduce from $540,000 to $300,000.
Further, you will only be permitted to use the bring forward provision to make non-concessional (after tax) contributions into superannuation that would bring the superannuation balance to $1.6 million which will be determined by the total accumulated superannuation and pension balances on the 30 June prior to the start of the following financial year.
| For example, if existing balance in super and penson at 30 June 2017 |
|
Maximum non-concessional contribution including bring forward for 2017/2018 |
| Less than $1.4 million |
|
$300,000 |
| $1.4 million to $1.5 million |
|
$200,000 |
| $1.5 million to $1.6 million |
|
$100,000 |
| Greater than $1.6 million |
|
Nil |
This means that right now you (if under age 65) can still make a $180,000 non-concessional (after tax) contribution into superannuation or trigger the 3 year bring forward provision and contribute up to the maximum $540,000 into superannuation this financial year.
Conditions apply.
WARNING, these comments do not constitute Personal Advice.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.
