The super threshold - what it means and what it doesn'tBY CHRISTOPHER PAGE | FRIDAY, 10 JUN 2016 2:51PM The introduction of a $1.6 million superannuation transfer balance cap was one of the biggest changes handed down in the 2016 federal budget. Now that the dust has settled it's ... Upgrade your subscription to access this article
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MAGDELINE JACOVIDES
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Christopher makes some good points regarding the likely difficulties an individual will have in achieving the $1.6 mil pension cap.
The $500k non concessional cap combined with the reduced $25,000 concessional cap effectively removes the ability for a large percentage of the mature and/or self-employed working population from ever being able to accumulate anything near a $1.6 mil benefit in the superannuation system.
We are witnessing a 'smalling' of the superannuation system by these proposed restrictions which if introduced will reduce one's ability to participate in and save economically for their retirement.
Surely these changes cannot proceed.
Amazing how confident some are with Budget announcements that are immediately followed by a long, double dissolution election period. The devil will indeed be in the detail and no planning should be undertaken at this stage.
One thing will be certain however, earnings from a pension pot that was seeded with greater than $1.6m will not need to be transferred to an accumulation balance, an Actuarial assessment will be required to allocate the tax that applies. Actuaries are winners from this announcement.