Did you know that the Government recently announced some further super changes to the proposed rules that were announced on Budget night?
The ‘proposed’ $500K lifetime cap that was previously announced and included all past personal contributions back to 1st July, 2007 has been shelved, and the current rules will apply until 1 July, 2017. After that, the limits will be replaced with a $100,000 p.a. cap.
This has now opened up an opportunity for anyone wanting to make further personal contributions into their superannuation account or undertake a re-contribution strategy. However, the deadline before the super changes come in is the 30th June, 2017.
If you are under the age of 65 you are able to make a personal contribution to your superannuation of $180,000 each financial year. You can also use the bring-forward rule to contribute up to $540,000 currently. What that means, is that if you haven’t used up your full $540,000 limit over the last 3 years and have the excess funds available, you can make a contribution up to this limit to your superannuation.
If you are wanting to take advantage of the current rules then you need to act prior to 1 July, 2017 to:
• Maximise super balance
• Balance equalisation between couples
• Re-contribution strategy
• Spouse re-contribution
• Sale of assets to move to super
The sad news
If you were hoping to take advantage of the removal of the ‘work test’ for Age 65 and over, we have sad news for you – this measure has now been removed and the current rules will apply.