Update: note the potential changes announced in the 2016 Budget.
The superannuation Non-Concessional Contributions cap for 2016/17 is $180,000:
- 2016/17 – $180,000
- 2015/16 – $180,000
- 2014/15 – $180,000
Note that some people may be eligible to use the three-year bring forward rule.
What determines the Non-Concessional Contributions Cap?
The amount of the Non-Concessional cap is set by section 292.85 of the ITAA 97, but instead of setting the rate directly it is set by reference to the Concessional Contributions Cap:
|Financial Years||Calculation of Non-Concessional Cap|
|2007/2008 – 2008/2009||Three times the concessional contributions cap|
|2009/2010 and future years||Six times the concessional contributions cap|
This change was made to keep the Non-Concessional Contribution cap at the same level when the Concessional Cap was halved, rather than an increase in the Non-Concessional cap.
How much has the Non-Concessional Contributions cap changed?
The Non-Concessional Contributions Cap has not changed as much as the Concessional Contributions cap, although the indexation of the Non-Concessional cap was also effectively frozen by the freezing of the Concessional Contributions cap. An increase in the Concessional Contributions cap by $ 5,000 results in a $ 30,000 increase in the Non-Concessional Contributions Cap, such as for 2014/15:
How much was the Non-Concessional Contribution Cap in prior years?
|Financial year||Non-Concessional Contributions Cap|
What is the three-year bring forward rule?
The three-year bring forward rule allows some super fund members to use more than one years non-concessional cap in a single year. For example if the members non-concessional cap was $ 180,000 they could contribute up to $ 540,000 in a three-financial year period without exceeding the contribution cap. See three-year bring-forward rule for super contributions.
You may also find the article Did freezing indexation of the contribution caps change anything? interesting.
Want to be kept up-to-date with SMSF and Superannuation changes, why not subscribe to our Newsletter?
This article, as with all content on this site, is for informational purposes only, and is not legal, financial, tax or other advice. Please read our Terms and Conditions of Use.a