Superannuation changes

The Budget contains the following changes to superannuation contributions concessions:

The Government will reduce the cap on concessional superannuation contributions from $50,000 to $25,000. This cap will be indexed.

The existing transitional cap for concessional contributions for those aged 50 years and over will also be reduced, from $100,000 to $50,000. This reduced cap will apply for the 2009‑10, 2010‑11 and 2011‑12 financial years, after which affected persons will revert to the lower $25,000 cap (or applicable indexed amount).  The transitional cap is not indexed.

The non-concessional contributions cap will remain at $150,000 for the 2009‑10 financial year, and will only increase when the new lower $25,000 cap is increased by indexation.

Minimum draw down
From 1 July 2009, the Government will halve the minimum amounts self-funded retirees have to draw down from their account-based pensions for 2009-10.

Minister for Superannuation's Press Release