$500,000 lifetime non-concessional contribution cap DUMPED, but… 26 September 2016
The Treasurer has announced the dumping of the $500,000 lifetime cap on non-concessional contributions to superannuation first announced in last May’s Federal Budget.
The lifetime cap will be replaced by an annual $100,000 cap but only where super balances do not exceed $1,600,000. Other changes to the Budget announcements have also been made.
While the dumping of the lifetime cap (and its potential retrospectivity) removes some contentious issues from the superannuation debate, it does raise some further issues regarding the application of the old (pre-Budget) rules for the current financial year and strategies to be considered going forward.