In the May 2016 Federal Budget, the Government announced a package of reforms – much talk was created from these proposals, and the uncertainty remained during the election until resolving the new Senate in recent times.
Following extensive consultation, the Government decided to amend the package late last week.
Three changes announced by the Government (15 September 2016) are :
- To replace the lifetime non-concessional contributions cap with lower annual caps for non-concessional contributions, only available to people with balances less than $1.6 million;
- Defer commencement of carry-forward arrangements for concessional contributions; and
- Not proceed with measures to increase the flexibility for contributions for people aged 65-74.
The Government will shortly draft a Bill to commence the legislation of these reforms.
Please contact us to discuss these proposed changes and their impact.
Once legislated, most measures will take effect from 1 July 2017.
The Government released for public consultation the exposure draft legislation and regulations for some superannuation measures announced in the 2016-17 Budget on 7 September 2016.
2016-17 Budget and related changes to the taxation of superannuation include:
Please click on the following links to read more...
Please do not hesitate to contact us to discuss these proposed changes and their impact.