Government ‘backflip’ on superannuation changes

Following further consultation, the government has announced the following ‘improvements’ to the superannuation changes announced in the 2016/17 Budget:

• the $500,000 lifetime non-concessional cap will be replaced by a new measure to reduce the existing annual non-concessional contributions cap from $180,000 per year to $100,000 per year;
• individuals with a superannuation balance of more than $1.6 million will no longer be eligible to make non-concessional contributions from 1 July 2017; and
• the commencement date of the proposed ‘catch-up’ for concessional superannuation contributions will be deferred by 12 months to 1 July 2018.

Also, the government will now not change the contribution rules for those aged 65 to 74.