As we are now a few weeks into the new financial year we felt it was important to remind you of the contribution cap changes to superannuation that applies from 1 July 2017.
Essentially, the ‘Concessional contribution cap’ (e.g. pre-tax contributions which include employer SG, salary sacrifice, personal tax deductible etc) has now been reduced to $25,000 for all people regardless of their age (assuming they are eligible to make super contributions). Therefore if you were salary sacrificing pre-tax income into your superannuation then you may need to ensure that this same amount does not breach this limit.
This change may also impact employees on high incomes that continue to receive employer superannuation guarantee (SG) contributions (i.e. 9.5%) on their full salary. If the SG amount is greater than $25,000 then you may wish to discuss this issue with your HR/Payroll department.
Lastly, the ‘Non-concessional contribution cap’ has also been reduced to $100,000 pa for anyone considering making after tax contributions.