During the 2016-2017 Federal Budget in May this year a lifetime cap of $500,000 on non-concessional superannuation contributions was proposed.
Fortunately this has been replaced as of 15 September 2016.
The ATO has stated that:
“the Government announced that from 1 July 2017, it will lower the annual non-concessional (post tax) contributions cap to $100,000 with a 3 year bring forward, for individuals under age 75, provided that the balance is below $1.6 million.”
This is a win for taxpayers, with the proposed lifetime cap set to limit retirement plans.
However, this is still a large drop from the $180,000 non-concessional cap that has is currently in place. You can still take advantage of the larger cap, and the 3 year $540,000 bring forward cap until 30 June 2017.
If you are unsure of your current non-concessional standing, let us know, as we can expedite getting the ATO to make these calculations.