Explanatory Memorandum
(Circulated by authority of the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator the Hon. Jane Hume)General outline and financial impact
Bring forward non-concessional contribution cap
The current non-concessional superannuation contributions cap is $100,000. The amendments extend the bring forward rule by enabling individuals aged 65 and 66 to make up to three years of non-concessional superannuation contributions under the bring forward rule.
Date of effect: 1 July 2020
Proposal announced: The Bill partially implements the measure Improving flexibility for older Australians from the 2019-20 Budget.
Financial impact: As at the 2019-20 Budget, this measure was estimated to have the following revenue implications ($m):
| 2019-20 | 2020-21 | 2021-22 | 2022-23 |
| 0 | -10 | -25 | -40 |
Human rights implications: The Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2.
Compliance cost impact: The Bill will result in a small increase in implementation costs for individuals and superannuation funds in the short term. There will be an overall decrease in ongoing compliance costs for individuals and superannuation funds.