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.