Government backflips on major elements of the proposed superannuation tax reforms

The announcement today by the Government on the tempering of superannuation changes has delivered mixed news for Australian taxpayers.Government backflips on major elements of the proposed tax reforms
Tax & Super Australia CEO Moti Kshirsagar says he fully supports the abandonment of the proposed $500,000 retrospective cap, as well as the corralling of $1.6 million worth of funds in pension phase.

“The complete removal of the $500,000 lifetime non-concessional cap will allow members of superannuation funds to recover their superannuation balances in the event of adverse market movements through making additional non-concessional contributions,” Kshirsagar says.

The superannuation account limit of $1.6 million imposed on the ability to make non-concessional contributions is a necessary step towards making superannuation system more sustainable.

However other changes, that abandon simplifying the acceptance of contributions, will have a negative impact on taxpayers over the age of 65. “The previous proposal was a genuine attempt to simplifying and streamlining the rules, as well as allowing greater flexibility to taxpayers over the age of 65,” Kshirsagar says”.

However other changes, that abandon simplifying the acceptance of contributions, will have a negative impact on taxpayers over the age of 65. “The previous proposal was a genuine attempt to simplifying and streamlining the rules, as well as allowing greater flexibility to taxpayers over the age of 65,” Kshirsagar says”.

ENDS

Note to editors: If you’d like more information about this topic or to schedule an interview, please call Tax & Super Australia’s Business Services Manager Lisa Greig  on (03) 8851 4505 or email lgreig@taxandsuperaustralia.com.au.

Tax & Super Australia, previously known as Taxpayers Australia, is a member-based organisation actively representing its members’ views as well as providing expert commentary on matters affecting the wider taxpaying community.

Tax & Super Australia, previously known as Taxpayers Australia, is a member-based organisation actively representing its members’ views as well as providing expert commentary on matters affecting the wider taxpaying community.

Tax & Super Australia, previously known as Taxpayers Australia, is a member-based organisation actively Government backflips on major elements of the proposed superannuation tax reforms expert commentary on matters affecting the wider taxpaying community.

Tax & Super Australia, previously known as Taxpayers Australia, is a member-based organisation actively representing its members’ views as well as providing expert commentary on matters affecting the wider taxpaying community.

 

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