In May 2016 Budget the government announced major changes to the superannuation which included a restriction on the non-concessional contribution whereby a person will have a lifetime limit of $500,000. This restriction was proposed to start on the 1st July 2017 however as the changes were not grandfathered it has meant that if a person had already contributed a non-concessional contribution to his superannuation of $500,000 or more prior to May 2016, they could not contribute any further non-concessional amount after the announcement date of May 2016.
Since then the government has changed its mind due to political pressure and they are now proposing that the $500,000 restriction limit is no longer relevant. However, from the 1st July 2017 a person will have a limit of up to a $100,000 of non-concessional contribution instead of currently $180,000 and they are proposing a limit of total value of $1.6 million. These proposed changes are not law yet and one will need to wait to see what the final legislation looks like. This is however does create opportunity where a person can contribute a non-concessional contribution between now & 1 July 2017 based on the current rules. This will mean they will have a window of opportunity to put more money into their super.
To read more about the original May Budget announcement click here
To read more about the current thresholds which will be valid until the 1st July 2017 click here
For more information on this subject feel free to get in touch with us click here.
To read more about our specialised service offers for SMSF, please click here.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.