The Treasurer has today announced major revisions to superannuation reforms as proposed by the 2016 Budget.

In brief summary:

–    the $500,000 lifetime non-concessional cap will be replaced by a new measure to reduce the existing annual non-concessional contributions cap from $180,000 per year to $100,000 per year;

–    individuals aged under 65 will continue to be able to ‘bring forward’ three years’ worth of non-concessional contributions in recognition of the fact that such contributions are often made in lump sums;

–    individuals with a superannuation balance of more than $1.6 million will no longer be eligible to make non-concessional (after tax) contributions from 1 July 2017;

–    reforms to the ability for those over 65 to contribute to super without meeting a work test have been scrapped;

–    The catch up concessional contributions package has been delayed.

More detail is sure to come and TriSuper Auditors will provide an in-depth summary when available.

In the meantime, please call us on 1300 TRISUP or 02 4961 2788 if you have any client specific queries on the impact of the announcement.