15 Feb 2017
Superannuation changes effective 1 July 2017
Changes to the superannuation rules will come into effect 1 July this year; the non-concessional contribution cap drops from $180,000 per annum to $100,000 per annum, which means you won’t be able to put as much into your super as you can right now. Check the reforms at a glance here.
Also to be aware that from the new financial year, if the total balance of your super accumulation and income streams is over $1.6 million, you won’t be able to make any more non-concessional contributions.
You could be eligible to top up your super by up to $540,000
If you’re under age 65, you could also bring forward three years’ worth of after-tax super contributions up to a maximum of $540,000. This is significantly higher than the $300,000 limit that will apply from 1 July 2017.
What else you need to know
An important reminder is that if you contribute more than these caps, you may have to pay extra tax. Also, once your funds are invested in super, you need to meet a condition of release such as retirement, to get access to the funds. The value of your investment in super can go up and down. Before making extra contributions to your super, make sure you understand and are comfortable with any risks associated with your chosen investment option. If unsure, it is important that you speak to me about how these changes may impact you before making any financial decisions.
How can you make the most of current superannuation rules?
These are important decisions and you need to consider your own circumstances and assess what the best outcome is for you. I can help. Speak to me before the 30 June 2017 deadline to find out how these super changes might affect you.
Email here or call 02 9324 8859 to make a time to understand how these changes may impact you.