Pension contributions rules on backdating
The super industry and many Liberal MPs are opposed to this measure, so the final details may change. Non-concessional superannuation contributions are more popularly known as after-tax contributions.You may even hear them called ‘undeducted’ contributions.Such super contributions are subject to a contributions cap, which sets a limit on the amount of non-concessional (after-tax) contributions that you can make over your lifetime (subject to legislation).The current legislated rules impose an annual cap of 0,000 for one year (1 July through to 30 June), but the Coalition government plans to introduce a lifetime cap of 0,000 taking effect from , and backdating the cap to 1 July 2007.For your reference, the non-concessional contributions cap for most of the 2015/2016 year (1 July 2015 to 7.29pm on ) is 0,000, which was the same limit that applied for the 2014/2015 year.(See table later in this article for contribution limits for the past 8 years).
From 7.30 pm on , the government announced the 0,000 lifetime cap, and all non-concessional contributions made since 1 July 2007 would be included in that lifetime cap.If you have made more than 0,000 in non-concessional contributions (NCC) from 1 July 2007 through to 7.30 pm, , then you will be deemed not to exceed your lifetime cap.On , the federal government announced an IMMEDIATE cut to the non-concessional contributions cap, including a cessation of the bring-forward rule (explained later in the article).Although this change has immediate effect, from (7.30pm), it is still subject to yet-to-be created legislation and also subject to the Coalition convincing its backbenchers and the independent MPs that this proposed change to the after-tax contributions cap is fair and not retrospective (good luck with that! Subject to legislation, Australians now have a lifetime non-concessional contributions cap of 0,000, rather than the annual cap of 0,000 (and the bring-forward rule allowing up to 0,000 over a 3-year period for under-65s is no longer available).Note that the annual non-concessional contributions cap, which was applicable in previous financial years and for most of the 2015/2016 year, no longer applies from (subject to legislation).