Parliament has now concluded its June sitting days without voting on the Bill which was intended to extend the bring forward non concessional contribution age to 67. This means it will not become law before 30 June 2020. Previously the work test age was extended to 67 so, collectively, both rules provided an opportunity for members who turned 65 this year.
By way of example:
Under the current rules
A member who has
- turned 65 during this year
- satisfied the work test this year
- a total super balance @ 30 June 2019 of less than $1.4m
- not activated the 3 year NCC bring forward provisions in the last 2 years
is eligible to make a non-concessional contribution of up to $300k this year.
Under the new rules (if the extension was passed)
The same member as above could make a $100k contribution this year and a further $300k NCC next year without having to satisfy the work test – though they would still need to satisfy the total super balance requirement @ 30 June 2020 of less than $1.4m.
Essentially, the changes would allow an additional $100k to be contributed. It is expected that the law will eventually be passed and apply from 1 July 2020 however this is not guaranteed.
