The end of financial year is fast approaching and we take this opportunity to advise you of the biggest changes in Superannuation in the last decade. From 1 July, 2017, the following changes to the superannuation system will become law:
- $100,000 annual cap on non-concessional contributions. The bring-forward option is still available for members under 65 years of age (effectively enables contributions of $300,000 over a three year period).
- Concessional contributions limit for everyone reduced to $25,000.
- Non-concessional contributions restricted to those with less than $1.6m in superannuation. If your combined super balances are more than $1.6 million, you cannot make any further contributions.
- Amounts held in pension accounts will be limited to $1.6m with excess balances having to be either removed from superannuation or transferred into an Accumulation Account.
- Investment earnings of transition to retirement pensions to be taxed at 15%, the same as super accumulation accounts.