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ARTICLE · 08 DECEMBER 2016

2016 Budget superannuation changes – passed!

Cooper Grace Ward
Cooper Grace Ward
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Cooper Grace Ward

Cooper Grace Ward

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Legislation implementing substantive changes to superannuation in the 2016 Budget has now been passed in Parliament.

AustraliaFinance and Banking

The legislation implementing the substantive changes to superannuation announced in the 2016 Budget has now passed through Parliament. This means we now need to get on top of the changes and make sure we are planning for their implementation as most of them are effective from 1 July 2017.

Some of the changes are quite fundamental. A summary of the main points are:

  1. The concessional contributions cap drops from 1 July 2017 to $25,000 per annum for everybody. This will be indexed with AWOTE in $2,500 increments.
  2. Starting from 1 July 2019, unused concessional contributions caps can be carried forward and used in the next five years. The first year that an unused concessional contribution cap can be carried forward is the 2018/19 year. This is only available if your total superannuation balances in all funds combined is $500,000 or less just before the beginning of the year you are using a prior year cap.

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