Recent changes affecting super contributions

From 1 July 2017, the following key changes to the contribution rules now apply:

  1. Personal non-deductible contributions           
    • Reduced contribution limits – The annual contribution limit has been reduced from $180,000 to $100,000 per person. Furthermore, the $540,000 bring forward amount has been reduced to $300,000.
    • New $1.6 million superannuation balance restriction – An individual who has total superannuation entitlements of at least $1.6 million at the start of an income year will not be able to make non-concessional contributions in that year without breaching their limit.
  2. A reduced deductible contributions limit – The annual limit in respect of deductible contributions has been reduced from $30,000 or $35,000 (depending on the individual’s age) to $25,000 for all individuals.
  3. Claiming deductions for personal (after-tax) contributions – From 1 July 2017, an individual will generally be able to deduct personal (after-tax) contributions irrespective of their work status (i.e., whether or not they are an employee) and irrespective of the level of any salary income derived during the relevant income year.
  4. Additional 15% tax liability on contributions for people earning more than $250,000 – From 1 July 2017, individuals earning more than $250,000 will generally be liable to pay an extra 15% tax on deductible contributions (including employer contributions) received by their superannuation fund.
  5. Extending the tax offset for spouse superannuation contributions – From 1 July 2017, the existing tax offset of $540 (maximum) for spouse contributions will generally be available to a taxpayer who makes superannuation contributions for the benefit of a spouse whose income is less than $40,000 (up from $13,800).


Contact us to find out how these changes affect you