Explained … the changes to super rules from 1 July
Several changes to super introduced in recent Budgets are about to kick off on 1 July.
The past three Federal Budgets have flagged changes to superannuation rules that may affect you from 1 July 2018:
- the 2017 Budget introduced the ‘downsizer contribution’, which allows individuals aged 65 years and over to make non-concessional contributions of up to $300,000 (or $600,000 for couples) to their super from the proceeds of selling their main residences. This applies only if the home was owned for 10 years and it is not sold before 1 July
- the Superannuation Complaints Tribunal will cease to exist on 30 June and will be replaced with the new Australian Financial Complaints Authority (AFCA). The AFCA will be an industry-funded complaints body covering all financial and superannuation disputes
- individuals whose annual income exceeds $263,157 and have multiple employers will be able to nominate that wages from certain employers are not subject to the superannuation guarantee. This will allow those individuals to avoid unintentionally breaching the $25,000 annual concessional cap
- tightening rules for tax deductions on personal contributions to ensure super fund members who receive a tax deduction on personal super contributions are completing ‘Notice of Intent’ forms.
- from 1 July, the Government will help people ‘catch up’ their superannuation contributions by allowing individuals with a total superannuation balance of less than $500,000 to carry forward and contribute for up to five years any unused concessional cap amounts