$500,000 Lifetime Super Cap Axed
Tuesday 20 September 2016
In a turnaround of their previously announced policy the Federal Government has axed plans for a proposed $500,000 lifetime cap on non-concessional contributions which had been due to take effect from 7 pm on 3 May 2016.
While the existing arrangement of an annual non-concessional contribution will remain in place there are changes to how it will apply.
From 1 July 2017 the existing limit of $180,000 per annum or $540,000 using bring forward mode wil be reduced to $100,000 per annum or $300,000 using bring forward mode.
The bring forward mode will continue to only be available where the individual was under 65 during the trigger year.
Ensuring you understand and take advantage of super contributions are critical in maximising the benefits for your future retirement.
Contact Horizon for advice if you have concerns about managing your super contributions.