Amended Superannuation Reforms
Written and accurate as at: Oct 17, 2016 Current Stats & Facts
On the 15th September 2016, the Federal Government outlined amendments to the superannuation reforms announced in the 2016/17 Federal Budget. In summary the following proposed changes were announced:
Transitional measures announced for the reduced non-concessional contributions cap from 1 July 2017.
The government announced that it would replace the proposed $500,000.00 lifetime non-concessional contributions cap with a reduced annual cap of $100,000.00 from 1 July 2017.
Clients under the age of 65 on 1 July 2016 can contribute $540,000.00 under the current bring-forward rules until 1 July 2017. However, the new proposals would mean that, if there was any unused cap amount left at 1 July 2017, the cap will be adjusted to take into account this new $100,000.00 limit. Additionally, no further non-concessional contributions would be permitted where super savings have reached $1.6 million.
Work Test to remain
The government has changed its mind on the removal of the work test for those aged over 65 (to meet the work test you need to have worked at least 40 hours over 30 consecutive days in the financial year the contributions are made).
Catch up concessional contributions
The government will continue with the proposal to lower the concessional contribution cap to 25,000.00 from 1 July 2017. However the commencement date for the catch up contributions will be delayed until 1 July 2018.
Sources:
Australian Government Treasury
http://www.treasury.gov.au/Policy-Topics/SuperannuationAndRetirement/Superannuation-Reforms