The changes to the superannuation system announced in the May 2016 Federal Budget have started to roll out, beginning as of July 1, 2017.
- A new lifetime cap on transfers to retirement income streams of $1.6 million
- A lower cap of $25,000 per annum for concessional contributions
- A lower cap of $100,000 per annum for non-concessional contributions
- Tax deductions for personal contributions to super
- A lower threshold of $250,000 for increased tax on concessional contributions for higher-income earners
- Increased thresholds for spousal contribution tax offsets from $10,800 to $37,000
- Removal of the tax exemption on earnings of assets supporting a Transition to Retirement Income Stream (TRIS)
- From 1 July 2018, members with super balances of $500,000 or less can take advantage of unused concessional contribution cap amounts from previous years. Unused amounts can be accrued for up to five years beginning 1 July 2018.