20/12/2016 – Now that the dust has settled after the Australian governments double back flip on superannuation we wanted to highlight to you a super opportunity for Australian expats are able to take advantage of before the 30th of June 2017.
The Government has abandoned its previous plan to limit after-tax super contributions (also known as non-concessional contributions) to a lifetime limit of $500,000. Instead, the after-tax super contribution annual cap will be reduced from AUD$180,000 per annum to AUD$100,000 per annum from 1 July 2017. If you are under 65 years of age at any time during the income year, you can ‘bring forward’ two future years of contribution capacity. Importantly, the existing threshold of AUD$180,000 per annum (and $540,000 on a ‘bring forward’ basis) remains in place until 30 June 2017.
So what does this mean in plain English? For those expats who are getting closer to retirement age and are focused on building up their superannuation accounts you can make three years worth of contributions under the old rules (AUD$180,000 per annum) in this financial years even though the rules are changing next financial year. After the 1st of July 2017 you will only be able to make non-concessional contributions of AUD$100,000 per year or AUD$300,000 using the bring forward rule.
There’s a big difference in being able to make a AUD$540,000 contribution to super as opposed to a AUD$300,000 contribution so if you’re getting closer to hanging up the boots on your career and want to make the most of these changes make sure you get in touch with your Atlas Wealth Management financial adviser to discuss this in more detail. If you’re not a client don’t worry just click here to get in contact with us and we’d be more than happy to talk to you.