$500k lifetime cap to be scrapped
The Turnbull government has reportedly made significant changes to its superannuation reform package, including scrapping controversial plans for a lifetime cap of $500,000 on non-concessional contributions.
This move is in line with extensive speculation that the reform would be on the chopping block, given the reported backlash to the cap from within the Liberal party and the opposition from Liberal party faithfuls.
To date, the proposal had already been significantly modified, with exemptions for personal injury payouts and for those with LRBAs underway before budget night.
Fairfax Media is reporting the cap has been replaced by a mechanism in which people would be able to make both concessional and non-concessional contributions until the cap of $1.6 million in a super retirement account is reached.
Further, there will be a yearly cap of $100,000 on non-concessional contributions until the $1.6 million is reached.
If you have any questions around these new SMSF proposals please feel free to contact;
Cayle Petritsch
SMSF Specialist Advisor
T: 02 9984 7774
E: caylep@nac.com.au
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@nac.com.au
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