From 1 July 2012, the concessional cap (ie the maximum contributions you can make to your super account at concessional tax rates) will be $25,000 for all members.
The Government has advised that the higher ($50,000) interim cap, which has applied to date for members aged over 50, will also cease. This means that there is limited time left (up to 30 June) to take advantage of the higher caps if you are over 50.
Grandfathering provisions will still apply for defined benefit members but we encourage you to call us if this applies to you to ensure you understand what this means.
The Government has deferred the start date of its 2010-11 Budget measure to increase the concessional contributions cap for superannuation members aged over 50, with less than $500,000 in superannuation savings. We will continue to work with industry groups to lobby for this change to be implemented on your behalf, and of course will keep you informed of developments.
Given the significance of this change in a very short timeframe, and the potential for members to be ‘surprised’ with higher tax on their extra contributions (if they breach the cap), we’ll also be directly contacting most members affected by the change to provide assistance with reviewing their contribution strategies.
Our Member Advice Consultants are available to help you make decisions about contributions to your AvSuper account so please contact us with your questions.