News

Business News

Super policy to undergo tinkering: Pyne

Senior Liberal minister Christopher Pyne has conceded “there may well be some tinkering around the edges” of the federal government’s proposed superannuation measures.

“That is perfectly normal and it is good government,” Pyne told the Nine Network ahead of today’s first joint parties meeting following the election.

He restated the overall policy remained the same.

Of the proposals, the non-concessional contributions (NCC) $500,000 lifetime cap has been the most controversial, with its retrospectivity element under fire.

The budget imposed that the NCC limit would be counted from 1 July 2007.

Treasurer Scott Morrison has also indicated possible exemptions to the NCC cap to provide some relief for divorced couples, those with inherited deceased estates and farming families.

In addition, in a letter dated 29 June, Morrison conceded the government would provide transitional arrangements for SMSFs, following lobbying from industry bodies.

It would be applicable for SMSFs that had entered into contracts to purchase assets prior to the 3 May budget and expected to use NCCs to complete the purchase, without breaching the backdated lifetime NCC cap.

Over the weekend, Prime Minister Malcolm Turnbull said the changes had introduced greater fairness in the superannuation tax system, had made it fit-for-purpose and also provided greater flexibility.

“The reforms are important, but obviously in the implementation and transition there is work to be done, there always is with tax changes, and they will go through the normal cabinet and party room process,” Turnbull said.

“And I am listening very keenly and carefully to concerns that have been raised by my colleagues and by other people in the community as well.

“There is a process being undertaken, but it’s important to recognise that’s always the case.

“There already have been some technical details that have been addressed by the Treasurer and there no doubt will be others.”

Copyright © SMS Magazine 2021

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital