Non-concessional contributions tipped to see significant rise
With the existing non-concessional contribution rules still in place to the end of this financial year, one SMSF administrator expects to see a significant uplift in non-concessional contributions.
While the SuperConcepts SMSF Investment Patterns Survey indicated a significant decline in contributions over the September quarter this was largely influenced by the proposed $500,000 lifetime non-concessional cap, which has now been abandoned.
The average contribution inflow per fund for the quarter decreased significantly from $10,750 to $3,040 for the quarter, this was the lowest since the inception of the survey in 2007.
“This shows the significant impact the proposed budget changes have had on member contributions,” said the survey report.
The $500,000 lifetime non-concessional cap now removed however and replaced with an annual non-concessional cap of $100,000 for members with a balance below $1.6 million from 1 July from 1 July 2017 onwards, said SuperConcepts.
The SMSF administrator also said the existing non-concessional contribution rules of $180,000 per annum or $540,000 on a 3 year bring forward basis, regardless of their member balance, still apply for the remainder of this financial year.
Given these more recent policy adjustments, SuperConcepts said it expects “a significant uplift in the level of non-concessional contributions prior to the end of the current financial year”.