On 1 July 2017, the biggest changes to superannuation rules in 10 years will come into effect. They touch on everything from super contributions to pension drawdowns.


One of the major changes to superannuation will be the changes to caps on concessional (pre-tax) contributions. SMSFs have until 30 June 2017 to make extra concessional super contributions under the current caps which are $30,000 for those who are under 49 years of age
at 30 June 2016, and $35,000 for those who are older.

All concessional, (pre-tax) superannuation contributions will be capped at $25,000 per annum when the changes to caps take effect from 1 July 2017.


From 1 July 2017, the annual non-concessional contribution cap will be reduced from $180,000 to $100,000 for clients with a total super balance of less than $1.6 million. Where a client’s total super balance is $1.6 million or more, their non-concessional contribution cap will be reduced to nil.

SMSFs have until 30 June 2017 to make use of the current, higher non-concessional (after tax) contributions cap of $180,000 a year, before it is reduced to $100,000.

If eligible, they can also take advantage of the current bring-forward rule and contribute up to $540,000 in non-concessional contributions.
There is no change to the current bring-forward rule which allows a window of up to two years of future after tax contributions to be contributed except that from 1 July this bring-forward cap will reduce to $300,000.

Given that clients with a total balance of $1.6 million or more from 1 July will not be able to contribute further non-concessional contributions in future years, this year may be their last opportunity to make these contributions depending on the future total balance in their fund.

The bring-forward rule will however, be limited when total super balances are between $1.4 million and $1.6 million in terms of the number of years that contributions can be brought forward.

We can help

Need someone to have a look at your own superannuation situation and advise you with the best strategy? Call us at 1800773643