The Turnbull Government has released further superannuation reforms first announced in the 2016-17 Budget.
If passed in Parliament, these measures will:
- Implement the Government’s $1.6 million transfer balance cap, which places a limit on the amount an individual can hold in the tax-free retirement phase;
- Lower the concessional contributions cap to $25,000 per year;
- Reduce the income threshold for Super surcharge from $300,000 to $250,000 (i.e. the level at which individuals are required to pay an additional 15 per cent contributions tax);
- Allow individuals with balances of less than $500,000 to ‘carry forward’ unused concessional cap space for up to five years;
- Ensure that transition to retirement income streams are accessed for the purpose for which they were designed and not for tax minimisation;
The Government remains on track to have these measures introduced into the Parliament before the end of the year.
Let's wait and see...