Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

8 November 2025

Home / 188

New super doors opening from 1 July 2017

From 1 July 2017 onwards, new superannuation measures will make it easier for some people to save for retirement, particularly those who’ve struggled to contribute in the past.

Tax-deductibility of super contributions

Under existing rules, tax deductions for personal super contributions are limited to those earning less than 10% of their income from waged employment, which in practice means people who are self-employed or who receive most of their income from investments.

From 1 July 2017, the 10% restriction will be lifted and anybody will be eligible to claim the deduction.

This presents a great opportunity, particularly for part-timers, casuals and those between jobs, who have traditionally struggled to contribute to super.

Case study - Fran

Fran has had a number of casual and part-time jobs and is expecting a baby in December 2017, at which point she’ll stop working for the rest of the financial year. Some of her casual jobs were for one or two days per week which meant she earnt less than the monthly income threshold for superannuation guarantee payments.

From 1 July 2017, Fran will be able to make tax-deductible super contributions up to the concessional contributions cap. This will provide her with a tax incentive to top up her superannuation.

Depending on her earnings, she may also consider making non-deductible super contributions to qualify for the government’s co-contribution. The maximum co-contribution payable is $500 based on a personal contribution of $1,000.

Carry-forward rule

Another new measure, effective 1 July 2018, is the ability to carry forward unused concessional contributions for up to five years.

If Fran is unable to make contributions in a year that she does not work, she can carry forward the unused amount into a subsequent year (FY 2019/20 and beyond), provided her total super balance is less than $500,000.

For example, if Fran’s unused concessional contribution entitlement is $20,000 in 2018/19, she can carry it forward to make $45,000 worth of concessional contributions in 2019/20 ($20,000 carried forward plus $25,000 pertaining to 2019/20).

The new measures present a good opportunity for SMSF trustees and their advisers to consider, as well as anyone saving for their retirement.

 

Graeme Colley is the Executive Manager, SMSF Technical and Private Wealth at SuperConcepts, a leading innovator in SMSF services. The material in this article is for general information and does not consider any person’s investment objectives.

  •   2 February 2017
  • 2
  •      
  •   

RELATED ARTICLES

Super contribution splitting

A super new opportunity for EOFY 2018

Deductibility of contributions after 1 July is a big deal

Firstlinks is sponsored by:
banner

Most viewed in recent weeks

The growing debt burden of retiring Australians

More Australians are retiring with larger mortgages and less super. This paper explores how unlocking housing wealth can help ease the nation’s growing retirement cashflow crunch.

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

LICs vs ETFs – which perform best?

With investor sentiment shifting and ETFs surging ahead, we pit Australia’s biggest LICs against their ETF rivals to see which delivers better returns over the short and long term. The results are revealing.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Family trusts: Are they still worth it?

Family trusts remain a core structure for wealth management, but rising ATO scrutiny and complex compliance raise questions about their ongoing value. Are the benefits still worth the administrative burden?

Latest Updates

Weekly Editorial

Welcome to Firstlinks Edition 636

A new academic study shows that almost all Australians agree that there is a housing crisis yet we can’t agree on how to fix it and are sharply divided along generational and ideological lines.

  • 6 November 2025
  • 21
Taxation

13 ways to save money on your tax - legally

Thoughtful tax planning is a cornerstone of successful investing. This highlights 13 legal ways that you can reduce tax, preserve capital, and enhance long-term wealth across super, property, and shares.

Taxation

Taking from the young, giving to the old

Despite soaring retiree wealth, public spending on older Australians continues to rise. The result: retirees now out-earn the young, exposing structural flaws in the tax system and challenges for fiscal sustainability.

Investment strategies

An obsessive focus on costs may be costing investors

As a relentless fee war grips Australia’s ETF market, investors may be missing the real battleground. Beyond basis points, index design itself - not cost - may be the most powerful driver of returns.

Taxation

Clearing up confusion on how franking credits work

It seems the mere mention of franking credits generates a lot of heat but not much light. Here's a guide to how franking credits work, and the impact they have on both companies and shareholders.

Investment strategies

Are the good times about to end?

As the bull market revs up, some investors worry about a possible correction. History shows the real question isn’t timing the top, but whether you have the time and liquidity to ride out inevitable downturns.

Superannuation

Australia slips in global pension ranking

The 2025 Mercer CFA Institute Global Pension Index shows Australia has dropped to its lowest ranking in the 17 years of the index. This explores why we're falling and what can be done about it.

Property

Where wine country meets real estate

High-profile wine regions don’t always see strong property growth - volume, exports, and infrastructure investment often matter more than reputation in driving regional property markets.

Sponsors

Alliances

Site Map

About Firstlinks

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.