Budget Backflips

superannuation

The Federal Government has dropped its $500,000 superannuation cap measure.

In a move aimed at placating the Coalition back-bench and ensuring the passage of the Government’s broader superannuation package through the Parliament, Treasurer Scott Morrison confirmed the changes to the cap measure today.

The Treasurer said the $500,000 lifetime non-concessional 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.

He said individuals aged under 65 will continue to be able to ‘bring forward’ three years’ worth of non-concessional contributions in recognition of the fact that such contributions are often made in lump sums; and that individuals with a superannuation balance of more than $1.6 million will no longer be eligible to make non-concessional (after tax) contributions from 1 July 2017.

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