Govt scraps $500,000 cap

15 September 2016
| By Mike |
image
image image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 6 months ago
Kevin Gorman

Super director remuneration ...

1 year 6 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 6 months ago

The pace of economic growth in Australia is expected to “grind higher over coming quarters” off the back of lower inflation, falling interest rates, and a robust labour m...

20 hours ago

The superannuation sector has welcomed confirmation that a controversial US tax provision will be removed....

21 hours ago

A new analysis from environmental finance group Market Forces has reportedly discovered that AustralianSuper is on the brink of becoming the largest investor in Whitehave...

21 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3