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.
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