Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 (81 of 2016)

Schedule 3   Non-concessional contributions

Income Tax Assessment Act 1997

2   Subsections 292-85(2) to (4)

Repeal the subsections, substitute:

Your non-concessional contributions cap - general rule

(2) Your non-concessional contributions cap for a *financial year is:

(a) unless paragraph (b) applies - the amount (the general non-concessional contributions cap for the year) that is 4 times your *concessional contributions cap under subsection 291-20(2) for the year; or

(b) if, immediately before the start of the year, your *total superannuation balance equals or exceeds the *general transfer balance cap for the year - nil.

Note: This subsection does not take into account any increase in your concessional contributions cap under subsection 291-20(4).

When you can bring forward your non-concessional contributions cap

(3) Despite subsection (2), work out your non-concessional contributions cap for a *financial year (the first year ) under subsection (5), and your non-concessional contributions caps for the following 2 financial years (the second year and third year ) under subsections (6) and (7), if:

(a) your *non-concessional contributions for the first year exceed the general non-concessional contributions cap for that year; and

(b) paragraph (2)(b) does not apply to you in relation to the first year; and

(c) you are under 65 years at any time in the first year; and

(d) a previous operation of subsection (6) or (7) does not determine your non-concessional contributions cap for the first year; and

(e) the difference (the first year cap space ) between the *general transfer balance cap for the first year and your *total superannuation balance immediately before the start of the first year exceeds the general non-concessional contributions cap for the first year.

(4) However, do not work out your *non-concessional contributions cap for the third year under subsection (7) if the first year cap space does not exceed an amount equal to twice the general non-concessional contributions cap for the first year.

Note: If this subsection applies, your non-concessional contributions cap for the third year will be worked out under subsection (2) (unless the third year becomes a new first year under a further application of subsection (3)).

First year of bring forward

(5) Your non-concessional contributions cap for the first year is an amount equal to:

(a) if the first year cap space does not exceed an amount equal to twice the general non-concessional contributions cap for the first year - twice the general non-concessional contributions cap for the first year; or

(b) otherwise - 3 times the general non-concessional contributions cap for the first year.

Second year of bring forward

(6) Your non-concessional contributions cap for the second year is:

(a) if:

(i) your *total superannuation balance immediately before the start of the second year is less than the *general transfer balance cap for the second year; and

(ii) your *non-concessional contributions for the first year fall short of your cap for the first year (worked out under subsection (5));

that shortfall; or

(b) otherwise - nil.

Third year of bring forward

(7) Your non-concessional contributions cap for the third year is:

(a) if:

(i) your *total superannuation balance immediately before the start of the third year is less than the *general transfer balance cap for the third year; and

(ii) your *non-concessional contributions for the second year fall short of your cap for the second year (worked out under subsection (6));

that shortfall; or

(b) if:

(i) your total superannuation balance immediately before the start of the third year is less than the general transfer balance cap for the third year; and

(ii) your cap for the second year is nil; and

(iii) your non-concessional contributions for the first year fall short of your cap for the first year (worked out under subsection (5));

that shortfall; or

(c) otherwise - nil.