The Government has only made “tiny” modifications to the superannuation changes announced in the 2016 Budget, Kelly O’Dwyer, Minister for Revenue and Financial Services, has claimed.
Asked on Radio National about the “different deal” the Government was putting forward on superannuation, Minister O’Dwyer responded: “Well when you say it’s a different deal, we’ve made a tiny modification on what we actually announced in the Budget and what was taken to the election.”
The 2016 Budget included a $500,000 lifetime non-concessional contributions cap, which the Government has ‘modified’ to a $100,000 annual cap, with no further non-concessional contributions allowed for people with balances over the general Transfer Balance Cap – which is initially set at $1.6 million. Draft legislation for this measure has been rushed through a consultation process, with only a week allowed for submissions. Many of the submissions raise issues around the complexity of the measure.
The Government also dropped the planned repeal of the ‘work test’ and delayed the start date for carried forward concessional contributions by a year.
Minister O’Dwyer said these changes “clears away any concerns that were previously articulated by the Labor Party”.
“It has made it very easy for them to support these reforms. There is no hurdle, no barrier to their support now. We have already been in briefings with the Labor Party, we are looking to bring forward that legislation before the end of the year. We have released three separate tranches for stakeholder engagement and discussion and that will be introduced before the end of the year.”
Asked if there was an expectation the legislation would pass the Senate, O’Dwyer said it would “depend very much on whether Labor is going to continue to play these obstructionist games as we’ve seen”.
Parliament has 12 sitting days remaining before the end of the calendar year.