Non-Concessional Contributions Cap

Budget measure

Our understanding

An annual cap of $100,000 will replace the current $180,000 cap from 1 July 2017. Additionally, non-concessional contributions may only be paid where the members account balance* is less than $1.6 million. If a member exceeds their non-concessional cap and/or has an account balance of more than $1.6 million, they will also be ineligible to receive Government Co-contributions. The $1.6m threshold is linked to and indexed with the Transfer Balance Cap.

The 3 year bring-forward rule can still be utilised, but will be based on the lower cap of $100,000 from 1 July 2017. If the bring-forward rule has been triggered in the 2015-16 or 2016-17 financial year, a proportional calculation will apply:

If bring-forward rule is triggered in 2015-16 financial year:
2015-162016-172017-18Total Cap
$180,000 $180,000 $100,000 $460,000
If bring-forward rule is triggered in 2016-17 financial year:
2016-172017-18^2018-19^Total Cap
^ assuming non-concessional cap remains at $100,000 for later financial years, however cap will continue to be subject to indexation.
$180,000 $100,000 $100,000 $380,000
If bring-forward rule is triggered from 2017-18 financial year onwards:
2017-182018-19^2019-20^Total Cap
^ assuming non-concessional cap remains at $100,000 for later financial years, however cap will continue to be subject to indexation.
$100,000 $100,000 $100,000 $300,000

*A members ‘account balance’ will be taken at 30 June each year and include their superannuation accumulation value, the balance of their Transfer Balance Account, as well as any transferred amounts that have not been counted elsewhere (i.e. amounts in transit between funds at 30 June).