There are many changes coming to the superannuation system from 1 July 2017. Changes affect many areas including concessional and non-concessional contribution caps, spouse offset, low income super, transition to retirement rules, changes in eligibility for co-contributions and more.
For full details see ATO – Super Changes
- Currently, a self-employed person can claim a tax deduction for personal super contributions where they meet certain conditions. The condition for less than 10% of their income to be derived from salary or wages will be removed. This means for those who work a combination of self-employed and employed by other entities, they will be able to claim tax deductions—this may apply to many bookkeepers.
- The concessional contributions cap will become $25,000 for everyone, regardless of age.
- There will be a “carry-forward” option for unused concessional contributions cap, (conditions apply).
- The non-concessional contribution cap will be reduced from $180,000 to $100,000 per year. This will remain available to individuals aged 65 to 74 if they still meet the work test. The non-concessional contribution cap is now set at four times the concessional contribution cap (currently $25,000) and will be indexed in line with any increases to the concessional contribution cap.
- The non-concessional cap will be nil for a financial year in which an individual’s total superannuation balance is greater than $1.6 million.