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15 Sep 2016

Government announcement re. Superannuation

The Government today announced it has dropped the proposed $500,000 lifetime cap on non-concessional contributions.  This was the most controversial measure announced in the Federal Budget back in May and has been the source of many media articles in recent months.

According to the Treasurer’s press release the measures announced today make the system even fairer, more flexible and more sustainable.

The amendments to the Budget package are:

The press release suggests that the Government remains committed to the reduction of concessional caps to $25,000 per year by saying that, with the bring forward rule, a member would be able to contribute $325,000 into super in a year.

The aim of these amendments is to restrict superannuation from being used as an estate planning vehicle while providing greater support to people investing in superannuation to provide a higher income level to support them in their retirement.

For further information, contact your McLean Delmo Bentleys Advisor.

Rohan Mansfield
Partner - Superannuation