On 15 September 2016, Treasurer Scott Morrison announced changes
to a number of 2016 Budget superannuation measures. These include
both good and bad news.
A $500,000 lifetime non-concessional contribution cap will not
The annual non-concessional contribution cap drops from
$180,000 to $100,000, expected to apply from 1 July 2017.
While under 65, a person can still bring forward three
years' non-concessional contributions.
After 1 July 2017, non-concessional contributions will not be
allowed once a person's superannuation balance has reached
their transfer balance cap (currently proposed at $1.6
The work test for people over 65 to make contributions will
The ability to 'catch up' concessional contributions
not made in prior years has been delayed to 1 July 2018.
These announcements will have to be considered when making or
planning superannuation contributions, and particularly
non-concessional contributions should be made before 30 June
2017 to maximise the $180,000 annual limit before it becomes
to contribute $540,000 before 30 June 2017 to access the
current bring forward cap rather than being limited to the new
lower bring forward cap (or the transitional arrangements).
As with all superannuation changes, we will not know the details
of how these will operate until we have legislation, and
particularly the transitional rules, which are not discussed in the
However, care must be taken in the interim to take into account
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