News Update: $ 500K Lifetime Cap Scrapped


As predicted in issue 3 of our SMSF Platinum Series, the first casualty of the government’s super reforms is the $500K lifetime cap on non-concessional contributions.

In a compromise, the $500,000 cap backdated to 2007 has been removed and replaced by a mechanism in which people would be able to make both concessional and

non-concessional contributions until the cap of $1.6 million in a super retirement account was reached. There will be an annual limit of $100,000 on non-concessional contributions, down from the current $180,000 cap, until the $1.6 million is reached.

People aged under 65 can continue to bring forward three years’ worth of non-concessional contributions in recognition that such contributions are often made as lump sums.

To balance the cost, the government has scrapped a proposal to remove restrictions such as minimum work requirements on people aged between 65 and 74 wishing to make voluntary contributions to their super.

The government has also delayed by a year – from July 1, 2017 to July 1, 2018 – plans to allow people with interrupted work patterns to roll over unused concessional contributions from the previous year.

Lets’ see how they go in the senate?





Financial Product Advice & Content – Disclaimer To the extent applicable the above general information we have provided you is purely factual in nature and does not take account of your personal objectives, situation or needs. The information is objectively ascertainable and, therefore, does not constitute financial product advice. Similarly, any tax, superannuation or self-managed superannuation fund advice we have provided is factual and not financial product advice as defined by the Corporations Act. It should be noted that taxation is only one of the matters that you need to consider when making a decision on a financial product. If you require personal or financial product advice you should consult an appropriately licensed or authorised financial advisor.

Commercial Associates Accountants and Advisors Pty Ltd A.C.N 117 062 183 and its subsidiaries are not licensed to provide financial product advice.