The Financial Planning Association of Australia The Financial Planning Association of Australia


On 15 September 2016, the Government announced significant changes to the proposed superannuation reforms, providing clarity and certainty for financial planners and clients around Superannuation.

The news that the retrospective $500,000 lifetime non-concessional cap has been removed is something the FPA has been actively advocating for on behalf of members since the Federal Budget.

Below are the key proposals:

  • The $500K lifetime Non Concessional Contributions (NCC) Cap has been dropped.
  • The Government has instead announced a reduction of the current annual NCC Cap from $180K to $100K from 1 July 2017. This will mean your clients can continue to contribute NCCs of up to $180K, and use the bring forward to $540K this financial year. The 3-year bring forward provisions will remain as per the current provisions based on the lower cap. No NCC contributions will be allowed once the proposed $1.6Million transfer cap has been reached.
  • The reduction to a $25K CC cap will remain in place and commence from 1 July 2017.
  • The concessional contribution catch up provisions have been delayed and will now not commence until the 2019/2020 financial year.
  • The Government has confirmed that Division 293 tax on Super will be reduced to individuals with salaries above $250,000 p.a.
  • The government has changed their mind on the removal of the work test for those aged over 65.

Read more about the announcement

Annual NCC cap

View our updated superannuation policy comparison table



In its response to the Financial Systems Inquiry, the government made the following announcements in relation to superannuation. The government will:

  • NOT ban borrowing in superannuation, as it believes there is insufficient data to justify support of this recommendation.
  • enshrine the objective of superannuation in legislation.
  • commission the ATO to monitor the leverage and risk in the superannuation system, and report back to government after three years.
  • remove the default fund provisions in the workplace modern awards to provide all employees with the ability to choose the fund into which their Superannuation Guarantee contributions are paid.
  • allow trustees to pre-select income products for retirement for members.
  • continue to work to remove the impediments for retirement income product development. This work will continue as part of the tax-white paper and retirement income review.

Read the government’s response to the FSI recommendations

Read the FPA media release

Any questions?

We are always keen to hear your valuable feedback and suggestions. Please let us know if there are any policy issues or concerns that affect you.

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