- Implement AUD1.6 million balance transfers peaks to a limited number of people could be held in a tax-free retirement phase;
- Lowering the preferential contributions AUD25,000 a year;
- Lowering the income threshold at which individuals are required to pay an additional 15 percent tax contribution from AUD300,000 to AUD250,000;
- Allow individuals with remnants of at least AUD500,000 “carry on” Do not use the top of the privileged “space” for up to five years;
- Make sure that the transition to retirement income stream has access for the purpose for which they were designed, not to tax minimization; and:
- To abolish the anti money-losing situation.
The Australian Government has published draft legislation for the implementation of the second tranche of the proposed reforms to the taxation of pension contributions.
As part of the reforms, the government will:
In a joint statement, Treasurer Scott Morrison and Minister of Revenue Kelly O’Dwyer said: “The reforms will make the system fairer, more flexible and more stable majority of Australians – 96 percent of people with pension – or will be completely switched off or will not be affected by these changes.”.
Consultation on the proposals will be completed on 10 October.