The announcement today by the Government on the tempering of superannuation changes has delivered mixed news for Australian taxpayers.
Tax & Super Australia CEO Moti Kshirsagar says he fully supports 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,” Kshirsagar says.
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.
However other changes, that abandon simplifying the acceptance of contributions, will have a negative impact on taxpayers over the age of 65. “The previous proposal was a genuine attempt to simplifying and streamlining the rules, as well as allowing greater flexibility to taxpayers over the age of 65,” Kshirsagar says.
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