The Government has released for public consultation the third round of exposure draft legislation and explanatory material to lower the annual non-concessional contributions cap to $100,000 and restrict eligibility to make non-concessional contributions to individuals with superannuation balances below $1.6 million. The Bill:
- amends the annual non-concessional contributions cap from $180,000 to $100,000 (which is subject to indexation based on average weekly ordinary time earnings (AWOTE));
- introduces a requirement that an individual must have a total superannuation balance each year of less than the general transfer balance cap ($1.6 million in the 2017-18 financial year) to be eligible to make non-concessional contributions up to the cap; and
- prevents payment of the government co-contribution in respect of an individual who is not eligible to make non-concessional contributions.
