Saving for retirement in Australia has become a lot more complicated since July 2017. The federal government has cut the annual contributions caps and has also restricted the amount of money you can transfer to retirement phase.
For Australians with large superannuation balances, the federal government has also limited the capacity to make non-concessional (after-tax) contributions, restricted the use of the bring-forward rule, and limited the availability of the co-contributions scheme and the spouse contributions tax offset. (I explain each of these concepts later in the article.)
As a means of restricting (in particular) the application of the super contributions rules, the federal government has introduced a new superannuation concept, called Total Superannuation Balance. A person’s Total Superannuation Balance is used to track and limit the amount of superannuation that Australians can contribute to super.
If you run an SMSF, a person’s Total Superannuation Balance also has a bearing on some SMSFs in retirement phase.