Changes for super 2017-18

Reductions in both the concessional and non-concessional contributions cap – The concessional contributions cap will reduce to $25,000 per year, from the current $35,000 for those aged over 49 and $30,000 for all others. The non-concessional cap will move down to $100,000 from $180,000.

Other changes

· A $1.6 million lifetime pension balance cap introduced.

· People aged under 65 will be able to bring forward three years’ worth on non-concessional contributions as a lump sum, until they reach the $1.6 million pension cap.

· Any unused concessional contribution cap can be carried forward over a rolling five year period after 1 July 2018 for individuals with a super balance of less than $500,000.

· People with incomes greater than $250,000 will pay 30% tax on concessional contributions (up from 15%). This previously applied to incomes greater than $300,000.