Updates on the Government’s Superannuation Reform Package
Changes to improve the fairness, sustainability, flexibility and integrity of the superannuation system announced in the May 2016 Federal Budget will soon come into effect. Many of the changes are now law, while other elements have been amended and are before the Senate for final approval.
Changes to superannuation include:
- A new lifetime cap on transfers to retirement income streams of $1.6 million
- A lower cap of $25,000 per annum for concessional contributions
- A lower cap of $100,000 per annum for non-concessional contributions
- Tax deductions for personal contributions to super
- A lower threshold of $250,000 for increased tax on concessional contributions for higher-income earners
- Increased thresholds for spousal contribution tax offsets from $10,800 to $37,000
- Removal of the tax exemption on earnings of assets supporting a Transition to Retirement Income Stream (TRIS)
- From 1 July 2018, members with super balances of $500,000 or less can take advantage of unused concessional contribution cap amounts from previous years. Unused amounts can be accrued for up to five years beginning 1 July 2018.
How do the changes affect your super?
Generally, how these changes affect your super depends on:
- if you make concessional or non-concessional contributions to super
- if you have, or plan to have, a transition to retirement income stream
- your level of income
- your overall super balance
Detailed explainers about each of the changes can be found on our Budget Measures page.
What is CSC doing to facilitate the changes?
Commonwealth Superannuation Corporation (CSC), has been in discussions with Treasury, Finance and Defence about policy and operational issues affected by the changes since the Budget was announced.
We will continue to represent you in discussions as the reform package starts to roll out from 1 July 2017, and will continue to keep you up to date with how these changes affect you.
Be sure to keep your super details up to date on Member Services Online so we can keep in touch.
Where can I get more information?
Full details about the super changes that will affect CSS members are on our Budget Measures page.
We also run regular and free Your Super and the 2016 Budget changes live webinars. These webinars provide an overview of the super changes how they impact CSS, PSS, PSSap and CSCri members. If you can’t make a live webinar, there is a recorded version (from 17 March 2017) that can be viewed any time.
To find more information about the full Superannuation Reform Package, or to track its progress through parliament, go to the Australian Parliament House website.
If you are concerned how the changes will apply to Defined Benefit schemes, please refer to the websites of those schemes directly.
Have specific questions? we've provided answers to some of the most common budget related questions in our faq section.
Want to know more about the parts of the budget that affect superannuation? we take an in-depth look at what the budget measures are.
Facsheets, Calculators and more.