The government has made significant changes to several of its plans around super reform.
The government has announced changes to three key 2016 Federal Budget proposals—the most significant being that it would not go forward with its proposal to introduce a $500,000 lifetime cap on non-concessional (after-tax) super contributions.
In a nutshell the new proposals include:
- From 1 July 2017, the existing annual cap of $180,000 on after-tax super contributions will be reduced to an annual cap of $100,000. The proposed $500,000 lifetime limit will be scrapped
- The commencement date for the proposed carry-forward arrangements for concessional (before-tax) contributions will be deferred to 1 July 2018
- Work test requirements will remain in place for those wanting to make contributions after age 65.