Reforming the taxation of concessional superannuation contributions

In the 2016-17 Budget it was announced that from 1 July 2017 the Division 293 income threshold will be lowered from $300,000 to $250,000. Individuals with an adjusted taxable income above this threshold will pay an additional 15% tax on concessional contributions that aren't in excess of their annual concessional superannuation contribution cap.

Additionally, the concessional superannuation contributions cap will be lowered to $25,000 for all individuals. (These caps are currently $30,000 for those under age 50; $35,000 for those aged 50 and over.)

From 1 July 2017 notional and actual employer contributions will be included in the concessional contributions caps for members of unfunded defined benefit schemes and constitutionally protected funds.

Legislation and supporting material

  • Legislation is currently being developed for this measure.

Find out more

    Last modified: 03 May 2016QC 48872