2 things you can do now
While the government will reduce the amount of money you can put into super from 1 July 2017, the good news is that you could still take advantage of opportunities before the financial year ends. The Australian Government’s May 2016 Federal Budget proposals and several subsequent modifications to its plans around super reform passed through both houses of parliament at the end of November.
With new regulations set to become part of Australian superannuation law, some of the rules around super contributions and the tax breaks available will change from 1 July 2017.
4 things that are changing
- The after-tax super contributions cap will be reduced
- The before-tax super contributions cap will also be lowered
- A pension transfer cap of $1.6m will be introduced
- Transition to retirement pensions will lose their tax exemption