Commencing in July 2017, where your
“total superannuation balance” is equal to
or greater than $1.6 million at 30 June of the
prior year, your non-concessional contribution
cap in the following financial year will be nil.
That is, you will be unable to make any non-
concessional superannuation contributions.
This type of contribution includes after-tax
personal contributions for which you can not
claim a deduction (as you fail the 10% Rule –
see later); contributions made for you by your
spouse; amounts transferred from foreign
superannuation funds (excluding amounts
included in the fund’s assessable income); and
contributions made for the benefit of a person
under the age of 18 that are not employer
For the purpose of this new rule, an
individual’s “total superannuation balance” is
the sum of:
• The market value of all your accumulation
• The market value of all of your account-
based income streams (including
Transition to Retirement Income Streams)
• The total value of all non account-based
income streams included in your transfer
balance account – see later
• The value of any benefits that are not
included in either your accumulation
accounts or your transfer balance account
as they have been rolled over and are in
For individuals who are still eligible to make
non-concessional contributions (i.e. your
“total superannuation balance” is less than
$1.6 million) your annual cap will be reduced
from $180 000 to $100 000 from 1 July 2017
The reduced $100 000 annual cap means that from 1 July 2017, the three-year bring forward
cap will be reduced to $300 000 of contributions over three years. However transitional rules
will apply. Where you have triggered the bring forward rule in either 2015/2016 or 2016/2017,
your remaining 3 year cap will be reduced depending on when you triggered your bring-forward
Going forward, the annual non-concessional
contribution cap will be set at four times
the concessional contribution cap. The
concessional contribution cap, which will
be reduced to $25 000 on 1 July 2017 (see
later) is indexed in increments of $2 500.
Therefore the non-concessional contributions
cap will increase in line with increases in the
concessional cap, in increments of $10 000.
From 1 July 2017 all individuals up to
age 75 will be allowed to claim an income
tax deduction for personal superannuation
contributions. Before this date, you can
only claim a deduction for your personal
contributions where less than 10% of your
assessable income, your reportable fringe
benefits and your reportable employer
superannuation contributions (e.g. salary
sacrifice contributions) for the year are from
being an employee.
As a consequence of the change to the law
in this area, if you are contemplating making
a personal contribution to superannuation
but, like most employees you are currently
ineligible to claim a deduction, you may wish
to delay your contribution to after 30 June
2017. By doing so, you will be able to claim a