The current concessional cap is $30,000 for aged 49 and below and $35,000 for 50 years and above. From 1st July, 2017 the Government is proposing to decrease the concessional cap to $25,000 per year for all ages.<\/p>\n\n\n\n
The concessional cap is the total of all before taxed contributions paid into Super. This means a combined total of SG Contributions, Salary Sacrifice and any Employer Additional Contributions.<\/p>\n\n\n\n
There is some flexibility to the above, whereby if you have a Super Balance less than $500,000, the Government is proposing to allow unused Concessional contributions caps to be rolled over for up to 5 years. This means if you have not contributed up to the amount of $25,000 in the year, you can \u201cmake up\u201d the difference in subsequent years over a five year period.<\/p>\n\n\n\n
The proposal is to, effective immediately, impose a $500,000 on non-concessional (after tax) contributions. If the cap has been exceeded prior to this, you would not be required to take the excess out of super.<\/p>\n\n\n\n
From 1st July 2017, the Government proposes that anyone with combined income and concessional superannuation contributions of more than $250,000 each financial year will now pay 30% (as opposed to 15%) tax on their superannuation contributions each financial year.<\/p>\n\n\n\n
Previously LISC, for income earners that earn less than $37,000 per year has remained. This is an amount of up to $500 per year that the Government will deposit into your Super account if you contribute after tax earnings.<\/p>\n","protected":false},"excerpt":{"rendered":"
Cuts to Concessional Contributions Caps The current concessional cap is $30,000 for aged 49 and below and $35,000 for 50 years and above. From 1st July, 2017 the Government is proposing to decrease the concessional cap to $25,000 per year for all ages. The concessional cap is the total of all before taxed contributions paid […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"yoast_head":"\n