The federal government has changed the proposed super legislation, replacing the $500,000 lifetime non-concessional contributions cap with a yearly limit of $100,000.
Addressing a press conference this morning, Treasurer Scott Morrison said: “The measures are as follows to replace the lifetime non-concessional cap with an annual cap of $100,000 with a three-year bring-forward limited to those who have a balance of $1.6 million.
“In addition to pay for this, we will be reversing the abolition of the work test measures for those aged 65 to 74 and that means the existing arrangements for those who are aged 65 will continue. That is a saving of $180 million.
“We will also defer commencement of the catch-up concessional contributions by one year to 1 July 2018, which provides a saving over the budget and forward estimates of $400 million.”
Legislation for all measures will be introduced by the end of the year.
Morrison said the measures were about continuing to ensure superannuation tax concessions were not being used as a tax-incentivised estate planning vehicle and also to ensure Australians were supported to maximise their retirement balances in the pension phase of superannuation where they accessed tax-free earnings.
“These measures make the superannuation system even fairer, even more flexible and even more sustainable,” he said.
“These measures remove any remaining impediment or barrier for the government’s budget superannuation package to now receive bipartisan support in this parliament.
“This morning, I’ve spoken to the shadow treasurer Mr [Chris] Bowen and outlined these measures to him.”