Morrison rejects call for $1 million lifetime non-concessional cap

Nest egg, superannuaiton, SMSF, retirement
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$500,000 lifetime non-concessional contributions cap, $1 million, Budget 2016, George Christensen, Treasurer Scott MorrisonTreasurer Scott Morrison has rejected a call for the proposed $500,000 lifetime non-concessional contributions cap to be increased to $1 million.

Coalition MP George Christensen said that doubling the cap to $1 million would satisfy most concerns about the policy. Mr Christensen has threatened to cross the floor and vote against the superannuation measures if changes aren’t made.

However Treasurer Scott Morrison has seemingly rejected increasing the lifetime cap to $1 million.

“If someone wants to put a million bucks after tax into their super so they can pay 15 per cent on it rather than their marginal tax rate and they had already cleared the $1.6 million then I would find it pretty hard to look my kids in the eye and tell them they have got to saddle a higher debt because someone who had a very big income wanted to pay less tax,” Mr Morrison told Ray Hadley on 2GB.

“Everyone always says they will find the savings somewhere else but they only even start thinking about it once the money is spent and the savings don’t turn up, Ray. As Treasurer what that means is your taxes go up because the deficit gets bigger or the debt goes up. So, I am not going to rashly move on this. If there are to be some amendments here then the Budget needs to be restored as a result of any changes there and so I will continue to work it through with my colleagues.”

“We can’t just keep saying ‘oh well we will make a concession here we will make a concession there’ and make it up somewhere else. If we keep going down that path then our kids are going to have a bigger debt and they are going to have to pay for the fact that our generation didn’t live within its means.”

Scott Morrison recently indicated the divorce was likely to be a ‘life event’ exempted from the lifetime non-concessional contributions cap. More exemptions are set to be included in the draft legislation.

The AFR has reported that consideration was being given to increasing the cap to $750,000 to appease some Coalition backbenchers.

In the interview the Treasurer refused to say if the cap would be raised from $500,000.

“We are still working through that process with my colleagues,” Mr Morrison said.

“We are sitting down, in open conversations, behind closed doors and working this through. I am not negotiating this through the media, I am doing it directly with my colleagues as you would expect.”

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  1. “We are sitting down, in open conversations, behind closed doors …” Morrison.

    Gee, now I feel so much better.

  2. It looks like divorce for retirees is the way to go, it is already being used for resolving financial difficulties of one partner needing to go into a nursing home. Needless to say our politicians are OK with their super generous super.
    The big problem is retrospective legislation once done where will it end.

  3. Hey Peter, you may be close to the mark. It’s ironic that there is a push for ‘more’ married people BUT if divorced you both can claim the single persons OAPension .., which pays a whole lot more than the couple’s rate!!!! Plus, you can still live under the same roof so long as you both live independently!!!! I am sure that there are many married persons out there living independent lives under the same roof sleeping in different beds, using different bathrooms, watching different TV shows, having different outside interests etc etc and yet drawing down the couple’s OAP! The family home divided into half won’t buy two places to live … Hence their financial needed to remain under the same roof!!! However, a word of warning …. Merely being divorced does not entitle you to the single rate. However some home work on the single rate can bring a financial windfall for some!!! Note, you can still claim the single OAP rate even though married …. Gotta do your OAP home work!!!!

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