Important changes to your employee’s super

We contacted your employees in late February 2017 to help them understand the changes to superannuation contributions from 1 July 2017. View a sample of this email.

A quick guide to the changes


  • The total concessional (before-tax) contributions your employee can make to their superannuation (including any payments made by their employer/s on their behalf) is capped at $30,000 per year (or $35,000 per year if aged 50 or over). These contributions are generally taxed at a rate of 15%1 when they are made directly into the employee’s super fund.
  • The total non-concessional (after-tax) contributions an individual can make is capped at $180,000 per year and those under age 65 can utilise the three-year bring forward rule and contribute up to $540,000. 

  • Higher income earners with income2 of $300,000  or more currently pay an additional 15% tax on their concessional contributions.

The changes from 1 July 2017 include: 

What is changing? How does this affect employees?
Concessional contributions Concessional contributions to superannuation will be capped at $25,000 per year, regardless of the age of the individual. These contributions will continue to be taxed at a rate of 15%1. For defined benefit plans, an employee’s notional taxed contributions are classed as concessional contributions and are added to other concessional contributions made to an employee’s super account.
Non-concessional contributions The total non-concessional contributions an individual can make will be reduced to $100,000 per year. Those under age 65 continue to be eligible to bring-forward a further 2 years’ worth of contributions. Those individuals with a total super balance over $1.6 million as at 30 June of the previous financial year or aged 65 years or over and who do not meet the work test, may be restricted from making non-concessional contributions after 1 July 2017.
Tax threshold for higher income earners The threshold at which higher incomes earners pay an additional 15% tax on their concessional contributions, will reduce from $300,000 to $250,000.
Transfer balance cap The Government has introduced a new limit on how much super savings can be used to invest in the tax-free retirement phase from 1 July 2017. This is called the ‘transfer balance cap' and will be $1.6 million. If their total pension balance/s exceeds this, an impacted individual may need to consider moving the excess back to the accumulation phase or withdraw the amount as a lump sum by 1 July 2017, otherwise a tax penalty may apply. This deadline is extended to 31 December 2017 for excess amounts below $100,000.
Transition-to-Retirement pensions Earnings on Transition-to-Retirement pensions will be taxed at up to 15% just like the accumulation phase of super, compared to their current tax-free status.

1 An additional 15% tax rate may apply to higher income earners.
2 The definition of ‘income’ for the purposes of this measure includes contributions which have had contributions tax applied to them, unless those contributions are excess concessional contributions. If you’re liable for this tax the ATO will notify you after the end of the financial year. Further information on this tax is available on the ATO website at

To help your employees learn more about the super changes and boost their retirement savings prior to 1 July 2017, you could consider directing them to our website:

If you have any questions, please contact your BT Relationship Manager or call BT on 1300 553 010, Monday to Friday, 8:00am to 6:30pm (Sydney time).

Things you should know:

This information is current as 29 March 2017. The information shown on this site has been prepared without taking account of your personal objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. The tax position described is a general statement and is for guidance only. It has not been prepared by a registered tax agent. It does not constitute tax advice and is based on current tax laws and our interpretation. Your individual situation may differ and you should seek independent professional tax advice.

Superannuation is a means of saving for retirement, which is, in part, compulsory. The government has placed restrictions on when you can access your investment held in superannuation. The Government has set caps on the amount of money that you can add to superannuation each year on both a concessional and non-concessional tax basis.  There will be tax consequences if you breach these caps.  For more detail, speak with a financial adviser or visit the ATO website.

BT Funds Management Limited ABN 63 002 916 458, AFSL 233724 is the trustee of and issuer of interests in BT Lifetime Super – Employer Plan which forms part of the Retirement Wrap super fund ABN 39 827 542 991. A Product Disclosure Statement (PDS) is available for BT Lifetime Super – Employer Plan and can be obtained by calling 132 135 or visiting You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of interests in the BT Lifetime Super – Employer Plan.

BT Funds Management Limited is a member of the Westpac Banking Corporation ABN 33 007 457 141 (Westpac) group of companies. Unless otherwise disclosed in the offer document for the relevant financial product, investments through a BT Lifetime Super - Employer Plan account are not deposits with, investments in, or other liabilities of, Westpac or any other company within the Westpac Group. They are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Westpac and its related entities do not stand behind or otherwise guarantee the capital value or investment performance of the specific investments you select or the account generally.

Westpac Securities Administration Limited ABN 77 000 049 472, AFSL 233731 is the trustee of, and the issuer of interests in, BT Business Super which forms part of Westpac Mastertrust Superannuation Division ABN 81 236 903 448. A Product Disclosure Statement (PDS) is available for BT Business Super and can be obtained by calling 132 135 or visiting You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of BT Business Super.

© BT Financial Group 2017 – A Division of Westpac.