Superannuation tax reforms

Posted on Posted in Superannuation

Superannuation tax reforms – government back flips

The government has announced changes to superannuation tax reforms they took to the election. The Australian Government in an attempt to keep backbenchers and party members inline, has tempered down superannuation changes and delivered mixed news for Australian taxpayers.

The changes include the abandonment of the proposed $500,000 retrospective cap, as well as the corralling of $1.6 million worth of funds in pension phase.

The complete removal of the $500,000 lifetime non-concessional cap will allow members of superannuation funds to recover their superannuation balances in the event of adverse market movements through making additional non-concessional contributions.

The superannuation account limit of $1.6 million imposed on the ability to make non-concessional contributions is a necessary step towards making superannuation system more sustainable.

In a volatile parliament, superannuation will continue to be leveraged in an attempt to get any reforms through the senate.