Budget 2016 Super Changes

While the Government or, some elements of the Government, may be rethinking the proposed Super Changes announced in the May 2016 Budget, it should be noted that, to date, there has been no official statement as to whether there will be changes and, if so, what changes they will be.

While we have no special relationship with the Government, it seems that if there are changes then they will most likely centre on the $500,000 lifetime non-concessional contribution cap.  

So far there have been suggestions that the $500,000 cap should be increased to a higher amount – some suggesting $750,000.

Additionally, there have been some suggestions that (as a transitional measure only) certain non-concessional contributions be “exempted” from the cap where the contributions were made in order to complete a limited recourse borrowing arrangement or which are required to “rectify” non-commercial limited recourse borrowing arrangements.  Exemption from the cap in the sense that the contributions would still count towards the cap but they would not give rise to excess non-concessional contributions.

Presumably, the Government will soon make a formal statement once Parliament has re-convened.