FPA welcomes removal of lifetime cap on super contributions
The Financial Planning Association of Australia (FPA) has responded positively to the Government’s decision today to dismiss the proposed $500,000 lifetime cap on non-concessional super contributions, to be replaced by a new annual cap of $100,000.
Benjamin Marshan CFP®, FPA Head of Policy and Government Relations, welcomed the removal of the retrospective aspect of the super plan.
“For most Australians, superannuation is a cornerstone of wealth and a vital measure in preparing for a comfortable retirement for Australians. For this reason it is vital that all Australians can have confidence in the super system, no matter their life stage or retirement goals.
“The FPA has been working with our members on advocacy around the removal of the retrospective $500,000 lifetime non-concessional cap since the measure was first proposed on budget night,” said Mr. Marshan.
“While the FPA will need to analyse the proposed $100,000 annual cap, allowing annual contributions of after-tax income to super provides greater clarity and the flexibility to continue using the bring forward provisions, which we believe is a step in the right direction,” said Mr. Marshan.
However, Mr. Marshan highlighted that the FPA remains concerned around a number of the proposed super changes.
“Consumers will need to be aware that the concessional cap catch-up contributions have been delayed by two years and that the work test for those over 65 will remain in place,” said Mr Marshan.
Mr. Marshan urged all Australians to seek professional financial advice from a CERTIFIED FINANCIAL PLANNER® professional or FPA member to help them understand the changing superannuation environment.
“The ongoing changes to superannuation show how important it is for Australians to seek professional financial advice. Superannuation affects us all, and the right advice can make a significant difference to retirement plans. Australians considering seeking financial advice can do so via our Find A Planner tool at www.fpa.com.au/findaplanner.