Cabinet has today buckled to intense backbench pressure and dumped many unpopular elements of its superannuation policy.
Treasurer Scott Morrison has announced significant changes to the plan it announced at the last budget, scrapping the proposed $500,000 limit on after-tax contributions.
It will be replaced by an annual non-concessional $100,000 limit, down from the current $180,000, and will quash debate that the $500,000 lifetime cap was retrospective.
Mr Morrison said “The reason we have made this change is because it makes it even fairer, even more sustainable and even more flexible,” Mr Morrison said.
People aged under 65 years will be able to continue to “bring forward” three years’ worth of the $100,000 contributions, Mr Morrison said.
But he said once individuals hit a $1.6 million super balance, they will no longer be eligible to make non-concessional contributions.
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