The Government on Mon 6.5.2013, released for public consultation an exposure draft of the legislation to implement a higher concessional superannuation contributions cap of $35,000 for older individuals as announced by the Government on 5 April 2013. For individuals aged 60 and over, the new proposed higher cap will apply from 1 July 2013. Individuals aged 50 and over will be able to access the higher cap from 1 July 2014. The Government noted that the higher cap is temporary and will cease when the general cap indexes to $35,000 (expected to be 1 July 2018).
COMMENTS are due by 13 May 2013.
[LTN 84, 6/5/13]
Exposure Draft (Note: the relevant provision is in the Transition Act)
Income Tax (Transitional Provisions) Act 1997
2 Section 292‑20
Repeal the section, substitute:
292‑20 Concessional contributions cap for older Australians—$35,000
(1) Despite section 292‑20 of the Income Tax Assessment Act 1997, your concessional contributions cap is $35,000:
(a) for the 2013‑2014 financial year—if you are 59 years or over on 30 June 2013; or
(b) for the 2014‑2015 financial year or a later financial year—if you are 49 years or over on the last day of the previous financial year.
Note: This amount is not indexed.
(2) This section does not apply to a financial year for which the concessional contributions cap worked out under section 292‑20 of the Income Tax Assessment Act 1997 is $35,000 or more.
(3) This section does not apply for the purposes of subsection 292‑85(2) of that Act.