Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

14 January 2026

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

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

Australia's retirement system works brilliantly for some - but not all

The superannuation system has succeeded brilliantly at what it was designed to do: accumulate wealth during working lives. The next challenge is meeting members’ diverse needs in retirement. 

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

The 3 biggest residential property myths

I am a professional real estate investor who hears a lot of opinions rather than facts from so-called experts on the topic of property. Here are the largest myths when it comes to Australia’s biggest asset class.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

Latest Updates

Superannuation

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Investment strategies

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

Infrastructure

How many hospitals will an extra 1 million people need?

We're about to add another million people to cities like Brisbane, Sydney, and Melbourne. How many hospitals and other essential infrastructure are needed to cater to a million more people? This breaks down the numbers.

Risk management

Is the world's safest currency actually the riskiest?

The US dollar’s long-standing role as a ‘shock absorber’ during times of market stress is showing cracks. The ‘Liberation Day’ sell-off was a timely reminder of this, and here's what investors should do about it.

10 things I learned about dementia and care homes from close range

My mother developed dementia before eventually dying in June last year. She was in three aged care homes before finding the right one. Here is what I learned along the way.

Economics

China's EV and solar backlog and future trade wars

China has flooded the world with electric cars and solar panels to offset the economic drag from a weak domestic property market. How long can this go on, and what are the implications for commodities and Australia?

Investment strategies

Why Elon Musk's pay packet is justified

Tesla copped criticism after its shareholders approved a package allowing Musk to earn up to $1 trillion in stock options. If only Australian businesses were more like Tesla.

Sponsors

Alliances

Site Map

About Firstlinks

© 2026 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.