The Government has provided a further update of the proposed $500,000 lifetime non-concessional (after tax) contribution cap from the 2016/17 Budget.
At this stage the Government is now likely to scrap the idea of a lifetime limit and reduce the maximum yearly after tax contribution limit to $100,000 (down from $180,000).
It appears the new proposal will retain;
- the 3 year bring forward provision
- the work test for over 65's
- Prohibit further after tax contributions for individuals with a balance of more than $1.6m in super.
Please keep in mind that this proposal has not been legislated and we suggest will still have changes to come.
If you have any queries regarding this, please don't hesitate to contact our Wealth Advisor, Ben Seeger at HTA Advisory.