The 2016 federal budget introduced significant changes to our superannuation system.
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The package did contain some positive reforms including the simplification of the contribution rules, allowing contributions to be made up to age 74, and removing the tests for personal contributions to be claimed as a deduction.
Allowing individuals with less than $500,000 of superannuation to carry forward previously unused concessional contribution limits will help those taking time out of the workforce to build up their superannuation balance.
On the negative front; the introduction of the lifetime cap on non-concessional contributions is confusing to many and in many cases has impacted on plans already in place. The limitation of pension accounts to $1.6 million has reduced confidence in the system. The ultimate confusion is that an election has been called and the announcements are not law.