- Lowering the superannuation concessional contributions cap to $25,000 per annum. See Reforming the taxation of concessional contributions on the Budget 2016–17 website fact sheet page.
- Allowing catch-up concessional contributions on a rolling basis for a period of 5 years. See Allowing catch-up concessional contributions on the Budget 2016–17 website fact sheet page.
The concessional contributions cap will reduce to $25,000 per annum for everyone regardless of age from 1 July 2017. For the 2016/17 financial year, the cap is $30,000 per annum, or $35,000 per annum for members aged 49 years or older as at 30 June 2016.
From 1 July 2017, notional (estimated) employer contributions will be included in the concessional contributions cap for the first time for members of unfunded defined benefit schemes and constitutionally protected funds.
The following contributions will count toward the concessional contributions cap from 1 July 2017:
- any salary sacrifice contributions
- any superannuation guarantee contributions
- any employer productivity contributions
- notional employer contributions
From 1 July 2018, individuals with an account balance* of less than $500,000 will be able to access their unused concessional contributions cap space on a rolling basis for 5 years. Amounts carried forward that have not been used after 5 years will expire. Only unused amounts accrued from 1 July 2018 onwards can be carried forward.
*A members ‘account balance’ will be taken at 30 June each year and include their superannuation accumulation value, the balance of their Transfer Balance Account, as well as any transferred amounts that have not been counted elsewhere (i.e. amounts in transit between funds at 30 June).