As expected, the Federal Budget contained significant changes
with all things to do with superannuation.
Reduction In Contributions Cap
The Government has announced that it will reduce the cap on
concessional superannuation contributions from $50,000 to $25,000
from 1 July 2009. The amount of the cap will be indexed annually
thereafter.
The existing transitional cap for concessional contributions for
those aged 50 years and over will also be reduced, from $100,000 to
$50,000 from 1 July 2009. This reduced cap will apply for the next
three financial years starting in 2009/10, after which the cap will
be revert to the lower $25,000 cap (or applicable indexed
amount). The transitional cap will not be indexed.
