Proposed superannuation budget changes released
The Government has released its second tranche of draft legislation to implement the proposed superannuation budget measures. The measures include:
- Introducing a $1.6 million pension cap (referred to as the “transfer balance cap”) and associated transitional arrangements for individuals who already have pension balances above $1.6 million
- Lowering the concessional contributions cap to $25,000
- Lowering the 30% contribution tax rate threshold (referred to as the Division 293 tax) from $300,000 to $250,000
- The ability to make up to 5 years’ worth of concessional contributions for those with balances less than $500,000
- Removing the earnings tax exemption (i.e. pension phase) for transition to retirement income streams
- Abolishing the anti-detriment rule
The lowering of the non-concessional contributions cap and its related measures were not included in this tranche but will be included in a further tranche which is anticipated to be released in the coming weeks.
For more information, please contact:
Melanie Twomey
Senior Associate
T 03 5225 5238
E mtwomey@ha.legal
or
Nicole Stornebrink
Associate
T 03 5225 5209
E nstornebrink@ha.legal
