Impact of superannuation reforms


Sustainability measures

Only 4 per cent of Australia’s 16 million superannuation account holders will be adversely affected by the Government’s changes to superannuation. Those most affected are in the top income decile and are the least likely to require the Age Pension in retirement.



Measure Who will be affected? How many are expected to be affected?
Introducing a $1.6 million superannuation transfer balance cap Individuals with a superannuation balance of more than $1.6 million Less than 1 per cent of fund members
Lowering the concessional contributions cap Individuals who make concessional contributions of more than $25,000 per year Around 3.5 per cent of fund members
Reducing the high income contributions tax threshold Individuals who have income (including superannuation contributions) of more than $250,000 per year Around 1 per cent of fund members
Lowering the annual non-concessional contributions cap Individuals who make, or plan to make, more than $100,000 in non-concessional contributions in a year (or $300,000 over 3 years) or have balances exceeding $1.6 million Less than 1 per cent of fund members
Strengthening the integrity of transition to retirement income streams Individuals who have, or plan to have, a transition to retirement income stream Around 110,000 people


Flexibility and fairness measures

Around 25 per cent of fund members are expected to benefit from the superannuation package. Those most likely to benefit from the Government’s changes to the superannuation system are women, carers, contractors and families.



Measure Who is expected to benefit? How many are expected to benefit?
Introducing the Low Income Superannuation Tax Offset Individuals who earn less than $37,000 per year Around 3.1 million, including around 1.9 million women
Allowing more people to claim a tax deduction for personal contributions to superannuation Self-employed people, regardless of what part of their income is in salary or wages, and those without access to salary sacrifice. Around 800,000 working Australians
Allowing catch-up concessional contributions Individuals with superannuation balances less than $500,000, whose income varies from one year to the next Around 230,000 people, including those with interrupted work patterns such as women and carers
Extending the spouse tax offset People whose spouses earn less than $40,000 per year Around 5,000 people with low income partners