Super backflip leaves chance for one final big contribution
By Fenwickefinancial On October 14, 2016
As the government is negotiating its super changes, there is an opportunity to make big after-tax (non-concessional) contributions up until 30 June 2017.
From 1 July 2017, the new rules will limit the amount of after-tax money that you can contribute to your super and will stop after-tax contributions once your account balance reaches $1.6m.
The old rules allow after-tax contributions cap of $180,000 per year and $540,000 with a 3 year bring-forward rule. The new rules will only allow after-tax contributions cap of $100,000 and $300,000 with a 3 year bring-forward rule and only if your super balance is below $1.6m.
Superannuation still remains a very concessionally taxed regime and should be the cornerstone to everyone’s retirement plans.
This is the opportunity if you have funds available to contribute to your super before 30 June 2017.
Please seek personal financial advice before taking any action.