Government drops $500,000 lifetime non-concessional contributions cap

Government drops $500,000 lifetime non-concessional contributions cap, Parliament, superannuation legislation, Budget 2016The Government has dropped the policy of a $500,000 lifetime non-concessional contributions cap, which was announced in the 2016 Budget.

Update: the Government has released the third tranche of draft superannuation legislation, which includes the lower non-concessional contributions cap of $100,000, preventing non-concessional contributions once super balances reach the Transfer Balance Cap and changes to the bring-forward rule.

The $500,000 lifetime cap policy has proved controversial among some sectors, particularly parts of the Coalition backbench. However dropping the policy is not without a cost. Read more...

Labor accuses Government of “superannuation policy by PowerPoint”

superannuation policy, budget 2016, government, coalition, ALP, labor party, powerpointLabor has criticised Treasurer Scott Morrison, after he reportedly distributed a briefing paper to Coalition MPs advocating for the superannuation changes announced in the 2016 Budget.

Update: the Government has released the first tranche of superannuation legislation for the changes announced in the 2016 Budget.

“Treasurer Scott Morrison’s humiliation at the hands of his backbench has deepened today, with news he has resorted to shopping around a PowerPoint presentation to convince the Liberal party room to support his superannuation plans, four months after they were published in the Budget,” said ALP Shadow Minister for Small Business and Financial Services, Senator Katy Gallagher. Read more...

Budget superannuation changes a ‘slippery slope’, says Coalition Senator

Budget 2016 superannuation changes, $500,000 lifetime non-concessional contributions cap, Senator Abetz, slippery slope, cross floorLiberal Senator for Tasmania Eric Abetz says the superannuation changes included in the 2016 Budget represent a slippery slope leading to the Government increasing taxes on more superannuants in the future.

Michelle Grattan, from The Conversation, asked the Senator why he had taken such a strong stand on superannuation, given Tasmania would have fewer people affected by the changes.

Senator Abetz responded: “Can I tell you, in Tasmania, yes it is an issue. Does it affect as many people directly, no. But one of those issues that hasn’t been considered in this total discussion is if these changes are only going to affect 4% of superannuants, and that is how it has been sold, well next time the Government wants some more money, will it move to 5% or 10% of the superannuant population?” Read more...

Raising lifetime non-concessional cap would cost Budget

Budget 2016, Budget 2016/17, superannuation, $500,000 lifetime non-concessional contributions cap, increasing cap to $750,000The Greens say increasing the lifetime non-concessional cap above what was announced could mean the policy costs money instead of improving the Budget bottom line.

The Government may be considering increasing the proposed lifetime non-concessional contributions cap from $500,000 to $750,000.

Setting the lifetime cap at $500,000 is estimated to save the Budget $550 million over the forward estimates, according to the Budget papers. The Greens say, pointing to earlier Parliamentary Budget Office (PBO) estimates, that increasing the lifetime cap to $750,000 is likely to actually cost the Budget money. Read more...

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

$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.

A doubling of the proposed lifetime cap would satisfy most concerns over the Coalition superannuation policy. #auspol Read more...

Divorce likely to be an exemption from lifetime non-concessional cap

Budget 2016, $500,000 lifetime non-concessional contributions cap, Treasurer Scott Morrison, ParliamentTreasurer Scott Morrison has indicated that divorce is likely to be a ‘life event’ eligible for an exemption from the $500,000 lifetime non-concessional contribution cap, while rejecting reports that lottery winnings and inheritances would receive the same treatment.

“We said before the election, well before the election actually that one of those events was a settlement that might have come from compensation claim or something of that nature. Other issues in relation to family court matters and things like that, the details of that are being worked through,” said the Treasurer in an interview on Sky News. Read more...

“Some prospect” of deal on Budget super changes, says Jim Chalmers

Federal Budget 2016/17, Budget 2016, superannuation changes, Government, Opposition, deal, $500,000 lifetime non-concessional contributions capThe Government and the Labor party may come to an agreement on the superannuation changes announced in the 2016 Budget.

Speaking about the superannuation changes with The Guardian, Shadow Minister for Finance, Jim Chalmers, said: “There is some prospect of agreement with the Government”.

‘We’ve flagged what we’re concerned about, which is really the retrospective elements of the package.”

The ALP have been critical some of the 2016 Budget superannuation measures, in particular the lifetime $500,000 non-concessional contributions cap – which, if enacted as announced, would count contributions since 1 July 2007 and could apply penalties for excess contributions made after 7.30pm on the 3rd of May 2016. Read more...

Super contributions exemption for lottery winnings “farcical”: SMSFOA

$500,000 lifetime non-concessional contributions cap, SMSF Owners’ Alliance (SMSFOA), exemptions, transitional arrangements, lottery, lottoIndications that lottery winnings will be exempted from the $500,000 lifetime non-concessional cap have been labelled “farcical” by the SMSF Owners’ Alliance.

“Reports that the Turnbull Government is contemplating an exemption to superannuation contributions from lottery wins are farcical and, if true, deeply unfair,” says a statement by the organisation.

The Treasurer has indicated that there will be further exemptions to the lifetime non-concessional contributions cap included in the draft legislation, to be released shortly. Read more...

Treasurer flags more changes to lifetime non-concessional contribution cap

Federal Budget 2016/17, $500,000 lifetime non-concessional contributions capTreasurer 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. Read more...

Superannuation changes an issue for Coalition party room

Budget 2016/17, 2016 Budget, changes to superannuation, $500,000 lifetime non-concessional contributions cap, Liberal Party, Coalition, party room meeting, backbenchersSuperannuation has been an issue for the Government ahead of the first Coalition party room meeting since the election.

The Liberal Party held a party room meeting on Monday, followed by a Coalition party room meeting.

Afterwards the PM announced some changes to ministerial positions, including in the Treasury portfolios. Kelly O’Dwyer’s title of Assistant Treasurer changes to Minister for Revenue and Financial Services. Minister O’Dwyer was also the Minister for Small Business, which moves National party member Michael McCormack. Read more...