The Government announced significant changes to the package proposed superannuation reforms, providing clarity surrounding Superannuation.
Once legislated, most measures will take effect from 1 July 2017.
The $500,000 lifetime Non Concessional Contributions (NCC) Cap has been dropped.
- The Government has instead announced a reduction of the current annual NCC Cap from $180,000 to $100,000 from 1 July 2017.
- This means he existing NCC Caps up to $180,000 and $540,000 under the bring forward rules remain in place for the current financial year ending 30 June 2017.
- The 3 year bring forward provisions will remain as per the current provisions but will be based on the lower cap of $100,000.
- No NCC contributions will be allowed once a member has a balance of more than $1.6Million.
- The reduction of the Concessional Contribution Cap to $25,000 will remain in place and commence from 1 July 2017.
- The proposed 5 year catch-up measures for Concessional Contribution for individuals with superannuation balances of up to $500,000 have been deferred by one year and will now have a start date of 1 July 2018.
- The Government has confirmed that Division 293 tax on Super will be reduced to individuals with income above $250,000 p.a.
- The government has reconsidered the removal of the work test for those aged over 65, meaning that the work test will remain in place.
Please feel free to contact our office if you have any questions in relation to the above.