The concessional annual contribution caps have been reduced
The new rules are as follows:
- Up to 30 June 2017 : <49 at 30/06/2016 = $30,000 and >49 at 30/06/2016 = $35,0000
- From 1 July 2017: $25,000 for all individuals regardless of age
Individuals with balances of $500,000 or less will be able to accrue any unused concessional contribution cap amounts on a rolling five-year basis commencing from 1 July 2018.
You should consider your existing concessional contribution arrangements and be prepared to adjust from 1 July 2017 to comply with the lower cap applying from that time.
The new rule changes also broaden the application of the 30% tax rate on concessional contributions for those individuals with incomes of $250,000 and above from 1 July 2017 (currently this rule only applied to those on incomes of $300,000 and above).