Superannuation cap scrapped

15 September 2016

BDO’s superannuation partner, Shirley Schaefer, commented on government’s announcement to scrap $500,000 superannuation cap.

“Scrapping the low lifetime cap and retrospectivity is good news for superannuation savers.

“In respect of the reduction from $180,000 p/a down to $100,000 p/a, we understand that the Government will continue to allow individuals to contribute up to a max of $300,000 over 3 years to allow for flexibility in the ability to contribute.  Other changes announced including the retention of the work test for 65 – 75 year olds is disappointing.

“But it is disappointing that the government appear to have proposed a ban on contributions if superannuation account balances are over $1.6million.  This appears to be a double-dip at the restrictions to super, eliminating the ability to contribute and removing the tax concessions to earning.”