Changes to $500,000 lifetime super cap confirmed

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The Federal Treasurer has confirmed that there will be somenchanges to the Government’s proposal for a lifetime cap of $500,000 onnnon-concessional superannuation contributions. A number of exemptions will be available.

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Scott Morrison said in a radio interview that he hadnpreviously spoken about the changes and that draft legislation on the measures,nto be released soon, will contain a number of changes. He said if someone getsna pay-out “as a result of an accident or something like that, then that isnexempted from the $500,000 cap”. He also said that if someone had entered intona contract before Budget night to settle on a property asset out of their SMSFnand they use after-tax contributions to settle that contract, “that won’t benincluded” in the $500,000 cap. Mr Morrison said there also would be “othernmeasures” in the exposure draft legislation.

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He effectively ruled out lifting the $500,000 cap amount, sayingn“the only people that would benefit are people who […] already on average haven$2 million in their superannuation scheme, have already put $700,000 in afterntax contributions”.

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TIP:nThe ATO can only calculate the amount of your non-concessional contributions availablenbased on the information it has. You may wish to review your own history ofncontributions. Please contact our office for more information.

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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.

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