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New super rules: what you need to know

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Since the election, many of the rules around super contributions have changed. However most of these rules have not yet been implemented.

Concessional contributions

The concessional (before-tax) contributions cap has been reduced to $25,000 a year from July 1, 2017.

how much can you contribute to super

Up until then, you can make concessionally taxed contributions of up to $30,000 or $35,000 - depending on your age.

Anyone under 75 will soon be able to make a concessional contribution. Also, those with under $500,000 in super will be able to hold unused contributions for up to five years.

Low-income earners

The low income super contribution, which was due to end in 2017, has been extended.

This can provide a refund of up to $500 on the tax paid on concessional contributions if you're earning under $37,000.

High-income earners

The tax rate on concessional contributions has been lifted to 30% for Australian's earning over $250,000 (including super).

After-tax contributions

After-tax contributions will now be subject to a lifetime cap of $500,000.

Any contributions made in excess of the cap after May 3 will need to be withdrawn or be subject to penalty tax.

Big super accounts

The amount of super that can be transferred to a retirement or pension account is now capped at $1.6 million, which affects retirees and those on a transition to retirement.

Other changes

From July 2017, transition-to-retirement (TTR) pensions will now attract a 15% tax on earnings.

This is a major change for TTRs which will remain tax-free up until the rule change comes into effect.

The spouse contribution tax offset will also be increased from $10,800 to $37,000 from July 1. One spouse in a couple can now claim a tax offset of up to $540 - only if they contribute to their low-earning spouse's super account.

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Steph Nash was a staff writer at Money until 2017.
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