MORE CHANGES? OH, SUPER!
Another superannuation ‘shake-up’ is on the horizon. Treasurer Scott Morrison’s latest plan is to scrap the proposed $500,000 limit on after-tax contributions and replace it with an annual non-concessional $100,000 limit, down from the current $180,000. However, once super balances reach $1.6 million, non-concessional contributions will be disallowed.
For those clients under the age of 65, $540,000 can be contributed to superannuation as an after tax contribution, under the bring forward rules, prior to 30 June 2017.
Most of the measures are not due to take effect until July 1, 2017, so there’s scope to take advantage of the current system up to 30 June next year. If you’d like to discuss your options, we’re here to help.