Likely changes to superannuation in 2017

2016 was a big year for superannuation changes, probably the largest since the 2007 ‘simpler super’ reforms. However this doesn’t mean that 2017 will be devoid of changes to superannuation.

A likely early issue will be setting an objective for superannuation in legislation, which was a recommendation of the Financial System inquiry. Though the recommendation was to seek broad political support for the objective, something which has not occurred, with the Labor party and superannuation industry taking issue with the proposed objective. Read more...

Superannuation changes in 2016

Superannuation changes in 2016 have been dominated by the range of measures announced in the 2016/17 Federal Budget – though several of these changes to superannuation have been modified or abandoned. Below is a list of many of the changes to superannuation in 2016 and their current status.

In brief, many of the Government’s changes to superannuation announced in the 2016 Budget, some of which have subsequently changed, have passed the Parliament: Fair and Sustainable superannuation package passes Parliament.

Superannuation caps, amounts & rates for 2016/17

ATO, superannuation contribution caps, superannuation thresholds, concessional contributions, non-concessional contributions, co-contribution rate and thresholds, maximum contributions base, low rate cap amount, cgt cap amount, untaxed plan capUpdate: The changes to superannuation announced in the 2016 Budget, if enacted, would have implications for some people – particularly in regards to the Non-Concessional contributions cap.

The superannuation rates and caps for the 2016/17 financial year have been released, including the contribution caps.

Superannuation contribution caps – Concessional and Non-Concessional

The contribution caps are no longer frozen, however wages growth has not been sufficient to result in an increase in the rates.

The general Concessional Contributions Cap remains at $30,000 for 2016/17 and the cap for people 49 years of age or older, at the end of the previous financial year, also remains unchanged at $35,000. Read more...

Superannuation Guarantee for people under 18

Superannuation Guarantee, under age 18, $450, part-time, 30 hours per monthThere are several exclusions from the requirement to pay superannuation guarantee contributions. The most well-known is the $450 monthly threshold. However superannuation guarantee contributions are also restricted based on age. People under 18 years of age have to meet additional criteria in order to be entitled to superannuation guarantee contributions.