Following extensive consultation, the government has announced the following revisions to the superannuation changes announced in the 2016/17 Budget:
- The $500000 lifetime non-concessional cap will be replaced by a new measure to reduce the existing annual non-concessional contributions cap from $180000 per year to $100000 per year (note that individuals aged under 65 will continue to be able to ‘bring forward’ three years worth of non-concessional contribution, although these are expected to be transitional).
- Individuals with a superannuation balance of more than $1.6 million will no longer be eligible to make non-concessional contributions from 1 July 2017
- The commencement date of the proposed catch-up concessional superannuation contributions will be deferred by 12 months to 1 July 2018
Ref: Joint media release by Treasurer and Minister for Revenue and Financial Services. 16 Sept 2016 in ‘The Tax Advisers Voice edition 263