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
Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016External Link received Royal Assent on 29 November 2016.
We are committed to providing public advice and guidance to complement the legislation that has been introduced. Further details can be found here.
Find out moreIn 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. The annual cap on concessional contributions will also be lowered to $25,000 for all individuals.