How will the proposed super changes affect your retirement? If you feel changes are being made that could cause you to rethink your retirement plans, then now is the time to let your thought be known.
When the Government announced the changes to superannuation in the 2016/17 Federal Budget, many thought they were set to become legislation. But, with pressure from within the Liberal Party and the failure to secure support from crossbench MPs and the Opposition, further changes were announced on 15 September 2016.
The proposals now being considered are:
- $1.6 million cap on balances in retirement income accounts
- reduce the income tax threshold on concessional contributions to $250,000
- reduce the annual concessional contribution cap to $25,000
- allow concession contribution of $100,000 per year for those with super balances of less than $500,000
- increase innovation in retirement income stream products by removing regulatory barriers
- improve the integrity of transition to retirement income streams
There are also amendments on the table to apply commensurate treatment to defined benefit schemes and constitutionally protected funds.
The Government has called for submissions from the public on these issues and you have until 10 October 2016 to make your submission.
For more information and to make your submission, visit Treasury.gov.au