The Government has released for public consultation an exposure draft of the legislation to implement the higher concessional superannuation contributions cap for older individuals announced by the Government on 5 April 2013 and the accompanying Explanatory Memorandum.
To help those nearing retirement to build the adequacy of their retirement savings the Government is introducing a higher superannuation contributions cap of $35,000 for older individuals. For individuals aged 60 and over, the new 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 higher cap is temporary and will cease when the general cap indexes to $35,000 (expected to be 1 July 2018).
The exposure draft legislation will amend the Income Tax Assessment Act 1997, the Income Tax (Transitional Provisions) Act 1997.