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Article published by RJS Wealth Management Pty Ltd

A non-concessional contribution is an after-tax contribution made to superannuation (super). The 2016 Federal Budget originally proposed a $500,000 lifetime cap on non-concessional contributions. This measure has now been scrapped and replaced with a $100,000 per annum non-concessional contributions limit (reduced from $180,000) which will take effect on 1 July 2017.

The $100,000 cap will be indexed in $10,000 increments in line with the $25,000 concessional (before-tax) cap, which will be indexed in $2500 increments, and which will also take effect from 1 July 2017.

Individuals with a super balanced of $1.6 million will no longer be eligible to make non-concessional contributions.

What are the current non-concessional rules?

Current legislation allows $180,000 per annum of after-tax contributions to be made to your super fund. As well as allowing 3 years’ worth of contributions ($540,000) to be brought-forward. Bringing forward contributions allows you to contribute 3-years’ worth of contributions in one financial year with zero non-concessional contributions made in the following 2 financial years. These super rules will remain in place until 30 June 2016.

Can I still use the bring forward rule under the new reforms?

For those with a super balance of less than $1.3 million, the answer is Yes, you will still be able to bring forward 3 years’ worth of cap, allowing $300,000 of contributions to be made in a single financial year with zero non-concessional contributions made in the following 2 financial years. Effectively reducing the amount of after-tax contributions an individual can contribute to superannuation by $240,000 over a 3 year period.

For individuals with a super balance of less than $1.4 million the answer is still yes, but you will only be able to bring forward 2 years’ worth of contributions ($200,000).


Superannuation can be complicated. To find out how these and other superannuation reforms affect you, what action you should take or to simply ask a question, ontact an RJS Wealth Management Professional on 1300 256 526. In many circumstances, it may be ideal to take action now.

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Source: SuperGuide.com.au, MLC

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