LEICHHARDT MP Warren Entsch has welcomed today’s release of the Government’s revised superannuation reform package.
Mr Entsch said he was particularly pleased about the scrapping of the $500,000 lifetime non-concessional cap, which 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.
“The perceived retrospectivity of the $500,000 cap has been well and truly addressed with its removal, and the lowered limit of $100,000 a year is a fairer outcome,” he said.
“People will still be able to ‘bring forward’ three years’ worth of non-concessional contributions.
“For example, if they sell a house one year and want to put a lump sum into their superannuation of $300,000 they can do, but they won’t be able to make any non-concessional contributions the following two years. After that, they can pick up their normal contributions again.
“Basically, we can now move forward on this package because there are a lot of elements in it which will make a big difference, particularly for low income earners and people who are out of the workplace for extended periods of time.
“I really appreciate the fact that we’ve had the opportunity to contribute to this legislation and I also value the feedback that I’ve had from a number of constituents; together this has resulted in better legislation.
“There’s always a need for flexibility within complex legislation like superannuation but we have to ensure that people can invest with a high degree of confidence, knowing that the decisions they make now are not going to be impacted negatively in the future.”
Further information regarding the Government’s changes is available at www.treasury.gov.au
