The imminent increase will bring about a range of changes to various contribution strategies for self-managed superannuation funds (SMSF) members and Australian Prudential Regulation Authority (APRA) regulated fund members alike. It is therefore important to start thinking about planning for the increase.
A temporary higher cap of $35,000 has also been available to those individuals aged 59 and over as of June 30, 2013. It will extend to those aged 49 years or over on June 30, 2014 (applying from July 1, 2014).
Click here to review our table which summarises these new caps on page 8.
The indexation of the concessional contributions cap has some additional flow-on effects to the non-concessional contributions cap, with this post-tax contributions cap being six times the concessional contributions cap. Therefore, from July 1, 2014, the non-concessional contributions cap will increase from $150,000 to $180,000.
Further, under "bring forward" rules, an individual who is under 65 years of age can bring forward two years' worth of future non-concessional contributions entitlements. From July 1, 2014, superannuation fund members aged 64 or less will be eligible for a higher bring-forward amount of $540,000 (up from $450,000).
Contact GJB on 02 9686 3130 to find out what strategies you can put into place to take advantage of the soon-to-be raised contributions caps.
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