The Coalition has issued the third tranche of its draft superannuation reform proposals, outlining changes to non-concessional contribution caps and superannuation administration arrangements.
In a joint release with Minister for Revenue and Financial Services Kelly O’Dwyer, Treasurer Scott Morrision said the changes listed in the third tranche would more appropriately address tax concessions.
“This tranche of exposure draft legislation includes legislative amendments to better target superannuation tax concessions by reducing the annual non-concessional contributions cap to $100,000 and restricting access to individuals with superannuation balances below $1.6 million,” Mr Morrison said.
“It also includes further amendments to make administrative arrangements simpler and more consistent for individuals and superannuation providers.”
The new annual cap system will replace the existing lifetime non-concessional contributions cap, as well as defer commencement of carry-forward arrangements for concessional contributions.
This follows the release of the first two tranches of the draft legislation, released in September, the first of which enshrined the system’s objective in legislation, with the second affecting the $1.6 million transfer balance cap.
“The government remains on track to have the superannuation reform measures introduced into the Parliament before the end of the year,” Mr Morrison said.
“This will provide taxpayers with certainty so they can make decisions about their savings and superannuation with confidence.”
Public submissions on the exposure draft and explanatory memorandum for the legislation close on Friday, 21 October.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite the Australian economy’s ongoing rapid recovery, an Australian equity head believes GDP growth will “fade” in 2022. ...