Treasurer Scott Morrison has flagged further changes to the $500,000 lifetime non-concessional contributions cap policy announced in the 2016 Budget.
The Treasurer has already set out some exclusions from the lifetime cap. In a radio interview on 2GB he said there would be more included in the draft legislation to be released shortly.
“I have already outlined what some of those changes were even during the election campaign. So, one of them, if you get a pay-out as a result of an accident or something like that then that is exempted from the $500,000 cap. If you have entered into a contract before Budget night to settle on a property asset out of your self-managed super fund and you are using after tax contributions to settle that contract – well, that won’t be included. There are other measures that will be in the exposure draft legislation and that will be coming out shortly,” Mr Morrison told Ray Hadley.
Asked about lifting the $500,000 cap amount the Treasurer said the cap would affect about 42,000 people – “that is less than one per cent of the superannuants in this country”.
“Now, they are on higher incomes, have higher balances, have already benefited significantly from the generous tax contribution and other concessions that exist from superannuation and the argument they are making is – I want more. I want to put more in so I don’t have to pay as much tax as someone else is on those earnings. So, look, I think this is a fair measure and I stand by the measure,” the Treasurer said.