The ATO has released details of Catch-up concessional contribution caps to the effect from 1 July 2018.
New concessional contribution ‘catch-up’ measure
From 1 July 2017, the maximum amount of concessional contributions you can put into your account each year will be $25,000 per annum for all age groups. Then commencing 1 July 2018, there is a new catch-up provision available for members with a superannuation balance of less than $500,000 just before the start of the financial year.
If your total superannuation balance is less than $500,000 amounts not paid up to the $25,000 cap each year will be able to be paid over the following five years. You can start catching up any unused concessional contributions from 1 July 2018. For example:
|Available unused cap||$15,000||$15,000||$15,000||–||$15,000||$15,000|
|Cumulative available unused cap||$15,000||$30,000||$45,000||–||$15,000||$30,000|
What it means for you
If your superannuation balance is less than $500,000 you may want to seek financial advice on your future contribution options.