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Given the Government flip-flopping on the Super non-concessional limits, I pose the following quandary:
I have recently retired (February), turned 65 in the middle of July and was due to make a $540K non-concessional contribution between the 1st of July 2016 and my birthday. With the proposed changes to the rules, I was only able to make a small contribution that took my total non-concessional amount to $500K “back dated” to 2007. These changes also go back to the old rule of not being able to contribute after 65 unless you pass the work test.
Now it appears that the “rules” have changed back to the “old” format until July 2017 when the $100K per year limits will come into play. Where does the fairness of this fit given that my plans were in place at least 3 years ago? (or was I born on the wrong day?)
A: I think you have made a really good point. In your case, you are a big loser from “playing by the rules”.
Although the Government has announced some transitional provisions, because you are now over 65, you won’t be able to access the “bring forward rule”. In your case, the amended change is absolutely unfair.
The only thing you can do, apart from writing to the Treasurer and your MP and hoping that your case might get a sympathetic hearing (which is unlikely, since these rules will be legislated), is to satisfy the work test in 2016/17 and subsequent years and make further non-concessional contributions (in 2016/17, $180,000 less the small amount you have already contributed, in 17/18 $100,000). You can be retired, have a change of “mind”, and then decide to go back to work. It is really not that hard to satisfy – 40 hours over any 30 day consecutive period, like working one full week, or one day per week for 4 weeks.
