How will the July 1 changes to Superannuation impact you?

Superannuation changes July 1

A number of changes to the rules governing Superannuation will come into effect on 1 July this year. Let’s take a look at what’s about to happen.

  • The cap on concessional (pre-tax) contributions to your Super will be limited to $25,000 annually for everyone
  • Your after-tax non-concessional contributions will now have a reduced cap of $100,000 per year with a ‘bring forward’ cap of $300,000 (see below for a potential opportunity here)
  • Everyone will become eligible for a tax deduction for any personal contributions made up to the concessional contribution cap
  • The Transfer Balance Cap will be limited to $1.6 million – that’s the maximum amount you can transfer to your pension fund to enjoy tax-free earnings.

The main changes listed above are just summaries and there are other conditions and details that apply.

If you would like further information on the 1 July changes, please call us on 3822 7201.

For some of us, there is a nice window of opportunity, but it is closing rapidly.

From 1 July, there will be a reduced cap on non-concessional (after-tax) Superannuation contributions of $100,000 per year, down from $180,000 per year.

People aged under 65 will, however, still be able to ‘bring forward’ three years’ worth of non-concessional (after-tax) contributions, which is intended to account for the fact that many contributions result from a one-off or irregular sale of property or a capital gain, which is greater than $100,000.

Before 30 June 2017:

  • If you are under 65, you can still bring forward up to three years of non-concessional (after-tax) contributions at the current rate of $180,000 per year, to a total of $540,000. (This assumes you haven’t already used this facility in the previous two financial years, and a work test applies if you’re over 65.)
  • If you’re aged 50 or more, you can make concessional (tax-deductible) contributions of up to $35,000 per year, or $30,000 if you’re under 50. This cap will be lowered to $25,000 for all ages from 1 July 2107.

If you are looking to add significantly to your Superannuation in the next couple of months, please talk with us as soon as possible to make sure you can maximise your benefits.



For qualified, professional advice, talk with Ian today on 3822 7201.

Ian Chester-Master is a Certified Financial Planner with over 20 years’ experience and a Director of Your Financial Design P/L.

Your Financial Design Pty Ltd is a Corporate Authorised Representative (1233744) of Madison Financial Group Pty Ltd | AFSL No. 246679 | ABN 36 002 459 001.

General Advice Warning

Before acting on any information in this article, we recommend that you consider whether it is appropriate for your circumstances.  You should not act on any advice until we have fully considered your personal circumstances and provided you with a Financial Services Guide, Statement of Advice and Product Disclosure Statement/s.