Government ‘backflip’ on superannuation changes

Following extensive consultation, the government has announced the following ‘improvements’ to the superannuation changes announced in the 2016/17 Budget:

  • 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 (not that individuals aged under 65 will continue to be able to ‘bring forward’ three years’ worth of non-concessional contributions, although there are expected to be transitional arrangements);
  • Individuals with a superannuation balance of more than $1.6 million will no longer be eligible to take non-concessional contributions from 1 July 2017;
  • The government will now not proceed with the harmonisation of contribution rules for those aged 65 to 74; and
  • The commencement date of the proposed catch-up concessional superannuation contributions will be deferred by 12 months to 1 July 2018.