The Turnbull Government has today released further Exposure Draft legislation and explanatory material for the superannuation reforms first announced in the 2016-17 Budget.
The reforms will make the superannuation system fairer, more flexible and more sustainable. The majority of Australians – 96 per cent of individuals with superannuation – will either be better off or unaffected as a result of these changes.
Around a quarter of fund members (including many low income earners) will benefit from the Government’s superannuation package.
This tranche of Exposure Draft legislation includes legislative amendments to better target superannuation tax concessions by reducing the annual non-concessional contributions cap to $100,000 and restricting access to individuals with superannuation balances below $1.6 million.
It also includes further amendments to make administrative arrangements simpler and more consistent for individuals and superannuation providers.
The Government remains on track to have the superannuation reform measures introduced into the Parliament before the end of the year. This will provide taxpayers with certainty so they can make decisions about their savings and superannuation with confidence. Introducing the legislation also provides superannuation trustees with the certainty they need to implement these reforms. With the support of the Senate, there will be no impediment to this occurring.
The Exposure Draft Bill and Explanatory Memorandum are available on the Treasury website. Submissions will close on Friday 21st October.