Unlike last year’s Federal Budget, superannuation was largely untouched in this year’s Budget. However, some slight changes were made to bolster the integrity of the super system.
Limited recourse borrowing arrangements (LRBA) will be included in a member’s total superannuation balance and transfer balance cap, effective from 1 July 2017.
From 1 July 2018, those aged 65 years and over will be able to make an additional non- concessional contribution of up to $300,000 ($600,000 for a couple) from the sale proceeds of their principal residence that has been owned for 10 years or more.
Also, on the cards is the tightening of related party transactions on non-commercial terms to help increase super savings from 1 July 2018.
The current tax relief for merging superannuation funds will be extended until 1 July 2020.