News – Budget Change to Proposed Contribution Cap on Over 50’s with Over $500,000 in Super

News – Budget Change to Proposed Contribution Cap on Over 50’s with Over $500,000 in Super

Budget Change to Proposed Contribution Cap on Over 50’s with Over $500,000 in Super

We mentioned the new proposal starting 1 July 12 for this tax year to halve the contribution cap for over 50’s with balances in super over $500,000, and what the potential administration nightmare it could cause. Good news is it looks like being abandoned in the latest budget announcement – Mike Taylor reports in SMSF Essentials

“The SMSF Professionals Association (SPAA) has endorsed the Budget decision to abandon a move to allow those aged over 50 and with balances of less than $500,000 to access higher concessional contribution limits, because the proposed regime would have been too complex.  SPAA head of technical and professional standards Graeme Colley said the proposed arrangement would have been complex and costly.  ‘It would have meant valuing a person’s superannuation fund balances and benefits to determine whether their balance in superannuation was under the threshold,’ he said.  Colley said this would have made it both a complex and costly process for super funds.”
READ MORE HERE

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