February 21, 2017

Concessional (pre-tax) and non-concessional (post-tax) super contribution caps reduce considerably from July 1, 2017. Concessional caps drop from the current amount of $30k or $35k p.a. (depending on your age) to $25k p.a. across the board. Non-concessional caps fall even more significantly from $180k p.a. to $100k p.a.

These changes affect all members of super funds, and it is important for you to understand the details as they apply in your individual circumstances.

For example, it may be wise to take advantage of the current cap by maximising your contribution to your existing super or, if you are considering opening a super fund account, contributing within the higher thresholds will provide a worthwhile kick start for your retirement savings. That is, of course, so long as you do so before June 30, 2017.

A window of opportunity also remains open for you to contribute non-concessional contributions of up to $180,000 p.a. and, for those under age 65, to utilise the bring-forward rule. The bring-forward rule allows you to contribute up to $540,000 p.a. before the end of June 2017. While the three-year bring-forward provisions will remain, from July 1, 2017 the contribution amount will be reduced to $300,000 p.a.

It is important to realise that your options for making contributions will be significantly limited after June 30, 2017, on top of the downward trend in caps that has lasted for over a decade. Failure to act on the current higher cap opportunity in the short term may affect your capacity for accumulating wealth in the long term. This will have implications for your lifestyle in retirement and your financial planning for any aged care that may be required.

Now is the time for you to review your overall financial and retirement planning circumstances and consider whether you have the financial capability to boost your super balance whilst the caps allow. Given the way contribution caps are trending, it is possible the opportunity may not appear again. For advice about caps and making the most of the current caps, please contact BNSW Planning on (02) 8252 5555 or email geoffreyf@brentnallsnsw.com.au

BNSW Planning Pty Limited, a wholly owned subsidiary of BrentnallsNSW Pty Ltd, holds a limited Australian Financial Services (AFS) licence and is fully compliant under 2016 legislation governing the delivery of super and SMSF advice by an accounting firm. For further information, please view our Financial Planning series of articles:

  • 2016 brings regulatory changes to advice on super – What’s the buzz?
  • Don’t get caught out by super advice changes
  • BrentnallsNSW super solution

Related Links:
2017 Superannuation Reforms Video Presentation & Handout

The information and advice provided is general advice only. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Neither BNSW Planning Pty Ltd as Corporate Authorised Representative of Akambo Pty Ltd trading as Accountants Private Advice (AFSL 322056) nor its authorised representatives make any representation or warranty as to the accuracy, reliability or completeness of material in this site, or in sites linked to this site. Except to the extent that liability under any statute cannot be excluded, BNSW Planning Pty Ltd as Corporate Authorised Representative of Akambo Pty Ltd trading as Accountants Private Advice (AFSL 322056) nor its authorised representatives do not accept any liability (in contract, tort, negligence or otherwise) for any error or omissions in this material or for any loss or for any loss or damage (direct, indirect, consequential or otherwise) suffered by any person.