Amended Superannuation Reform
The Federal Government has announced improvements to its 2016 Budget superannuation reform package to remove the proposed $500,000 lifetime non-concessional contributions cap and modify two other policies.
As we outlined in our 2016 Budget Wrap, the original proposal was to replace the existing non-concessional contribution cap with a lifetime limit of $500,000, including all contributions made since July 2007. The $500,000 lifetime cap will be replaced by a new measure to reduce the existing annual non-concessional contributions cap from $180,000 per year to $100,000 per year, applying until the limit of $1.6 million is reached.
The two other changes announced by the Government on 15 September 2016 are to defer commencement of carry‑forward arrangements for concessional contributions; and not proceed with measures to increase the flexibility for contributions for people aged 65‑74.
The detail of each proposed change will only be known once legislation is drafted and considered by Parliament. Additional information can be found on The Treasury’s website and in The Treasurer’s media release.
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This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the information, consider its appropriateness to your circumstances.
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