Total superannuation balance
A person’s total superannuation balance (includes both tax-free and taxable components) at a particular time will, very broadly, include:
i. the value of their accumulation phase (including any defined benefit) superannuation interests, and the balances of Transition to Retirement (TtR) income streams, plus
ii. if they have a transfer balance account (ie they have already commenced a retirement phase superannuation income stream), a modified balance for that transfer balance account so as to essentially include a value calculated for certain defined benefit (ie non-account based) income streams (if any), plus the current value of the person’s account based income stream(s) in the retirement phase, plus
iii. any rolled over superannuation benefits not counted in i and ii above that are “in transit” at that time, less
iv. the sum of any structured settlement contributions.
NCC cap restriction from 1 July 2017 where $1.6 million total super balance
As already outlined previously, this restriction means that individuals with a total superannuation balance of at least $1.6 million at 30 June in a financial year will have no NCC cap in the immediately following financial (contributing) year.
The 2017-18 year is the first financial year (based on the total superannuation balance on 30 June 2017) where this restriction can result in a nil NCC cap.
Where a member makes NCCs inadvertently in a financial year where they have a nil NCC cap, these will be considered excess.
Further, the inability to make NCCs will prevent eligibility for the government co-contribution and for the spouse contributions tax offset (these are not available in respect of excess NCCs).
| To support the above restriction, individuals who are close (but under) the $1.6 million on 30 June can only make NCCs for the following contribution year as per the following table: Total super balance on prior 30 June | NCC cap and bring-forward period available for following year |
| Less than $1.3 million | 3 years ($300,000) |
| $1.3 – <$1.4 million | 3 years ($300,000) |
| $1.4 – <$1.5 million | 2 years ($200,000) |
| $1.5 – <$1.6 million | 1 years ($100,000) |
| $1.6 million | Nil |
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