The Federal Government recently reversed its budget proposal of limiting non concessional contributions to a lifetime cap of $500,000. In its place, the Government has proposed to lower the non concessional contributions cap from its current level of $180,000 to $100,000 a year from 1 July 2017.
In doing so, it has provided some certainty as to the level of non concessional contributions that can be made for the 2016/2017 and future years notwithstanding some conditions.
Members under the age of 65 will still be able to access the 3 year bring forward rule, the equivalent of 3 years non concessional contributions. However, the amount will be reduced from $540,000 to $300,000 from 1 July 2017. Members over the age of 65 are not able to access the bring forward rule.
For the 2016/2017 financial year members under the age of 65 who have not activated the bring forward rule in the prior year(s) will be able to make a non concessional contribution of $540,000 for that year.