Sladen Snippet – Government dumps lifetime $500K NCC cap – alternative measures announced

The Government has announced that the proposed lifetime $500K non-concessional contribution (NCC) cap measure will no longer proceed. Instead, the following measures will replace it:

  • The annual NCC cap will be reduced to $100K from 1 July 2017 (currently $180K)
  • The ability to bring forward contributions for members aged less than 65 will remain but will be reduced to 3 times the new cap (ie to $300K)
  • No NCC’s can be made for members whose account balance exceeds $1.6 million (indexed)
  • The “work test” will not be abolished
  • The start date for the measure to utilise 5 years’ worth of concessional contributions caps will be deferred to 1 July 2018

The abolition of the 10% test is still proposed to proceed.

To discuss this article, or for further information please contact:

Phil Broderick
Principal
T: +61 3 9611 0163
M: +61 419 512 801
E: pbroderick@sladen.com.au

Melissa Brazzale
Associate
T: +61 3 9611 0161
E: mbrazzale@sladen.com.au

Phil Broderick