Newsletter; Superannuation changes finally legislated (non-concessional contribution opportunity to 30 June 2017)
Prior to Budget night, if you were under 65 at any time during the current financial year, you were able to apply the ‘bring-forward’ rule and make three years worth of non-concessional (after-tax) contributions up to the $540k limit (being the current and subsequent two year annual contribution limits) assuming that this rule was not triggered in any of the preceding two years.
Since Budget night, the ‘bring-forward’ rule would have normally reduced this current year limit to $380k for 2017 but the legislation modifies the rule temporarily to be three times the general non-concessional limit for the current year (i.e. $540k until 30 June 2017).
From 1 July 2017, the “bring-forward” rule will reduce the limit to $300k (for fund balances under $1.4m – there are some transitional rules to reassess the limit where the ‘bring-forward’ rule is triggered but not fully utilized in 2017). The legislation will also no longer allow you to make any further non-concessional contributions once your total super balance reaches $1.6m. This provides an opportunity for anyone who may exceed the lower contribution limit or balance to make additional contributions prior to 30 June 2017.
