The Government has today announced improvements to the superannuation changes announced in the 2016-17 Budget that make Australia’s superannuation system even fairer, more flexible and more sustainable.
Following extensive consultation, the Government will amend the package to improve the measures that seek to restrict superannuation being used as an estate planning vehicle, while providing greater support for Australians investing in their superannuation with the primary objective of providing an income in their retirement.
The main points of the announcement are as follows:
- 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;
- 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;
- 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;
"These measures mean that with their annual concessional contributions, Australians will be able to contribute $125,000 each year and, if taking advantage of the non-concessional 'bring forward', up to $325,000 in any one year until such time as they reach $1.6 million," Mr Morrison says. Mr Morrison estimates that 96 per cent of people will be better off or unaffected by the changes.
Press release: http://sjm.ministers.treasury.gov.au/media-release/096-2016/