Last year the Federal Government passed legislation imposing a $1.6 million cap on the amount of tax-free super savings a person can hold in retirement from July 2017.  After-tax contributions will also be capped at $100,000 a year.  The government initially wanted to place a lower cap on after tax contributions but faced significant backlash and increased the cap.


What does this mean for you?

Steve Judd from Judd Financial Services explains the changes like this in his client newsletter:


Thomas makes a non-concessional contribution of $220,000 before 30 June 2017 and plans to make a further non-concessional contribution in the 2017/18 financial year. Because of the transitional measures, he will only be able to contribute an additional $160,000 next financial year out of his after-tax income.


We have assumed here that Thomas is below the total superannuation balance threshold (see below). This is because, under the transitional measures, a triggered bring-forward cap in the 2017 financial year that carries over to the 2018 financial year is then subject to the non-concessional contribution annual limits applicable for each relevant year involved in the trigger.

$180,000 (16/17) + $100,000 (17/18) + $100,000 (18/19) = $380,000 bring-forward cap

$380,000 – $220,000 non-concessional contribution made (16/17) = $160,000 remaining (17/18) 

The new total superannuation balance threshold means that from 1 July 2017, if your total superannuation balance exceeds $1.6 million, you’ll be unable to make further non-concessional contributions to your super.



But I don't make voluntary contributions?

If you don't make voluntary contributions to your superannuation fund then you should still review your super because for many people it is the largest or second largest investment they have.  You may need to change funds, you may be able to afford small contributions that will make a large difference to your retirement, you may need to revisit your life insurance, income protection insurance, or your death benefit nomination may be out of date.

You should obtain advise in relation to your superannuation and your estate planning needs.




Judd Financial Services

Steve Judd is a fully qualified Accountant with considerable “Real World” experience in business and financial planning.  Judd Financial Services can relate to your situation and provide you with advice and assistance appropriate to your needs.  Like Coode & Corry they give practical advise in plain English.

They are located right near us, at 7 Macquarie Ave Penrith, close to the Penrith CBD and has plenty of street parking.  To find out more visit their website by clicking here.

Contact Details 

Phone: (02) 4721 1106     Fax: (02) 4721 1495




Who will your superannuation go to?

Your death benefit nomination with your superannuation company may be out of date.  This means that your superannuation company, not you, gets to choose who inherits your superannuation and any attached life insurance.

Read our article by clicking on the link to the right to see whether you need to update your binding death benefit nomination.




Do you need to update your Will?

When did you last update your Will?

If you need advice on your Estate planning needs you should make an appointment to speak with Hamish Williams.  Perhaps you are concerned that somebody will make an adverse claim against your Estate and you need to set up a Trust to protect your assets.  

Maybe you have a straight forward family arrangement but need to prepare a Will because you have been putting it off until 'later'.  Even if your family consists of a spouse and adult children who are children of that spouse, and no one challenges their right to inherit, dying without a Will adds to the cost and delays associated with administering your Estate, and is a stress that your family does not need.  Make an appointment to see Hamish and find out what you should do to protect your Estate.