$500,000 non-concessional lifetime cap to be scrapped

In a monumental turnaround, the Federal Government has today made major changes to its superannuation package by dumping highly controversial plans for a $500,000 lifetime cap on non-concessional contributions.

This follows months of pressure from industry bodies, including MGD Wealth and SISFA, on the Government to rethink their superannuation policy. We welcome the turnaround and are committed to continue to work with all parties to ensure fair and level-headed regulation.

The $500,000 lifetime cap will be replaced by a new measure which allows retirement savers to make both concessional and non-concessional contributions up to the limit of $1.6 million. A yearly cap of $100,000 (down from $180,000) on non-concessional contributions will apply until the $1.6 million is reached. Scott Morrison’s media release can be found here.

Disclaimer: This article contains general information only and is not intended to constitute financial product advice. Any information provided or conclusions made, whether express or implied, do not take into account the investment objectives, financial situation and particular needs of an investor. It should not be relied upon as a substitute for professional advice.