Q: Can I make concessional contributions to super once I have more than 1.6 million?
A: It is possible for a person to have concessional contributions made to superannuation irrespective of the total amount they have in super.
There is no limit to the amount a person is permitted to accumulate in superannuation. However, the value of pensions measured against a person’s transfer balance cap for amounts in retirement phase is not permitted to exceed $1.6 million (which is subject to indexation).
However, if a person’s total balance(s) in all superannuation funds exceeds $1.6 million it is not possible to make non-concessional contributions to superannuation
The new superannuation rules, which commence from July 1 will impact on the amount of tax paid in the superannuation fund for members with a pension value of more than $1.6 million or receiving a transition to retirement pension (TRIS).
Any excess over $1.6 million will be required to be transferred to a taxed environment in accumulation phase or taken from the fund as a lump sum. Investments supporting a TRIS will be transferred from a tax exempt to taxed environment in the fund.