Changes to the superannuation rules will come into effect on 1 July 2017.
While the government will reduce the amount of money you can put into super from 1 July this year, the good news is that you could still take advantage of opportunities before the financial year ends.
What you could do before the changes come in
Contribute more in before-tax (concessional) super contributions
The before-tax super contributions cap will be reduced from $30,000 per year (or $35,000 if you’re turning 50 or over before 1 July 2017) to $25,000 per year, for everyone, irrespective of age.
This means, depending on your circumstances, there is an opportunity to contribute an additional $5,000 (or $10,000 if you’re turning 50 or over) in before-tax super contributions than what will be possible before the cap is lowered on 1 July 2017.
Contribute more in after-tax (non-concessional) super contributions
The after-tax super contributions cap will decrease from $180,000 per year to $100,000 per year.
This means, depending on your circumstances, you could contribute $80,000 more in after-tax super contributions than what will be possible when the after-tax super contributions cap is reduced on 1 July 2017.
If you’re under age 65, you could also bring forward three years’ worth of after-tax contributions up to a maximum of $540,000, which is much higher than the $300,000 limit that will also apply from 1 July 2017.
Everyone’s different, so you’ll need to consider your own circumstances and think about whether or not these options are right for you. See other important considerations ….