Taking effect from 1 July 2017, the concessional contribution cap is now $25,000 for everyone, so ensure any reserving and salary sacrifice strategies are appropriate.
The annual (after tax) non-concessional contributions cap is $100,000, and the 3-year bring-forward cap is $300,000. This has changed from the 2016/2017 year, where the annual after-tax contributions cap as $180,000, and the 3-year bring-forward cap was $540,000.
From 1 July 2017, if your total superannuation balance exceeds $1.6 million as at 30 June 2017, then you cannot make non-concessional contributions. Further, you can only take full advantage of the bring-forward rules if your total superannuation balance (TSB) is less than $1.4 million as at 30 June 2017, and partial advantage of the bring-forward rules if your total superannuation balance is more than $1.4 million but less than $1.5 million.
If you are older than 65 you will need to meet a work test to contribute to super in most cases. You need to work for at least 40 hours during 30 consecutive days at any time during this financial year to make tax deductible and non-deductible contributions to super.
From 1 July 2017, most people, regardless of their employment arrangement, will be able to claim a full deduction for personal super contributions they make to their super fund until they turn 75. Individuals who are aged between 65 and 75 will need to meet the work test to be eligible to claim the deduction.
If you wish to claim a tax deduction for personal contributions, you must complete and lodge a notice of intent with your super fund and have this notice acknowledged (in writing) by your fund.
These changes are quite complex, so if you are unsure before you make any contributions to your SMSF please do not hesitate to contact our super team to confirm your eligibility.