In order to get the proposed superannuation changes approved, the government was forced to alter their plan and they have subsequently announced that there will be no more lifetime cap. Instead, they will reduce maximum non-concessional contribution to $100,000 per year which can be moved into a superannuation account so long as the account balance stays below $1.6m. Currently, the annual non-concessional amount that can be moved into super is $180,000 and there is no balance limit.
So under the new legislation, if you were aged 50 and you inherited $500,000 then you could move $100,000 of this in to your super each year for 5 years provided your super balance did not exceed $1.6m.
The three-year bring forward option still applies, but will be limited to $300,000 in total.
The new changes are scheduled to come in to force on 1 July 2017 (subject to legislation).
Contact us if you need help with understanding the new superannuation legislation or if you need help with moving funds into your super.