The government announced today improvements to the 2016-2017 Budget in respect to Superannuation.

Dear Clients and Friends,

The government announced today improvements to the 2016-2017 Budget in respect to superannuation.

Instead of the introduction of a $500,000 lifetime non concessional lifetime cap, they are keeping and revising the existing annual non concessional cap as follows:

• Annual non-concessional contribution cap to be lowered from $180,000pa to $100,000pa
• The “bring forward “of three years’ worth of non-concessional contributions to be maintained for those under 65.
• Members with a superannuation balance of over $1.6 million will be ineligible to make non-concessional contributions.

Other 2016-2017 Budget package announcements that have changed are as follows:

• The work test will remain for those 65 to 74 in order to make additional contributions.
• The proposed catch-up concessional contributions will now commence from 1 July 2018. Unused concessional contributions will accrue from 1 July 2018 on a rolling basis for a period of 5 years.

If you would like to discuss this, please contact Lisa Papachristoforos or Maureen Allan on (03) 9690 5700