The Coalition government originally announced the introduction of a $500,000 lifetime non-concessional (after-tax) contributions cap taking immediate effect (from 7.30 pm on 3 May 2016).
Such a measure was a big shock considering that under the 2015/2016 and 2016/2017 rules applicable at the time, an individual under the age of 65 could make up to $540,000 in non-concessional contributions over a 3-year period.
After community and industry uproar, the government saw the error of its ways and scrapped the $500,000 lifetime cap, and replaced it with an annual $100,000 non-concessional cap (NCC), which took effect since 1 July 2017. The new NCC rules also allow up to $300,000 in NCCs over a 3-year period. For more information about the non-concessional contributions caps for the 2017/2018 year, including the possibility of making up to $300,000 in NCCs, see SuperGuide article Your 2017/2018 guide to non-concessional (after-tax) contributions
Important: Under the new NCC rules, you can only make non-concessional contributions if you have a total superannuation balance of less than $1.6 million (which is a different concept to the $1.6 million transfer balance cap on pension transfers – refer earlier in article). For more information on the $100,000 NCC cap, see SuperGuide articles New $100,000 cap: Cut to non-concessional contributions cap and Non-concessional contributions: 10 facts about new $100,000 cap.
Reminder: If you’re planning to make significant non-concessional (after-tax) contributions which trigger the bring-forward rules, then you need to be aware of transitional rules that come into effect for the 2017/2018 financial year, and potentially for the 2018/2019 financial year (for more information, see SuperGuide articles Bring-forward rule: A definitive guide and Non-concessional contributions: 10 facts about new $100,000 cap.