Concessional Contributions (tax deductible)

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).

For more information on any of the issues raised or to discuss any concerns you may have with the new superannuation rules please contact your account manager or Alan Mitchell on 03 9895 9333.

Disclaimer: The contents of this email is general in nature and we accept no responsibility for persons acting on information contained herein.