NEWS FLASH: Proposed Lifetime Cap on Non-Concessional Contributions Scrapped
On 15th September 2016 it was announced that the $500,000 lifetime cap on non concessional contributions proposed in the 2016 budget will be scrapped.
The replacement policy introduces an annual cap of $100k which will take effect from 1st July 2017. If you are aged under 65 years then you will also be able to bring forward three years worth of contributions, similar to the previous rules, in order to contribute $300k in one year. It is important to note however that anyone whose Super balance exceeds $1.6m will not be able to make any non concessional contributions under the new rules.
As the proposed rules for the new caps apply from 1 July 2017, this means that the annual $180k Non concessional cap and the $540k bring forward rule remains in place from now until 30 June 2017.
Please contact our office to discuss how these rules apply to your specific situation.