$500k Lifetime Non- Concessional Cap to be thrown out
After a brigade of changes to the unpopular $500,000 Lifetime Non-Concessional Cap first announced in the May budget, the government has confirmed it will be scrapped. It will be replaced by and Annual Non-Concessional Cap of $100,000 until the $1.6 million cap on tax free pension account balances has been reached. This change has come at one cost with the proposed move to remove restrictions on Australians aged 65 to 74 making voluntary contributions being placed on the chopping block also. Overall this is a positive move in superannuation and people being able to fund their retirement.
More to come.
Mark Carey | Accountant | The Money Edge | Bundaberg