I'm not so sure it will be in the May budget, October Budget more likely in my opinion. They will barely have the definition of the purpose of Superannuation Legislation sorted by May.
Either way it is coming, just what the Capped amount ends up being and the mechanics of how they will introduce the Cap and the workings of it.
Will it be grandfathered? Probably not. Why? With contribution limitations now in place it will be harder but not impossible to attain higher balances.
Will it be $5m? Hard to say, only around 11000 accounts with that or more, there are around 100000 with more than $2.5M so more likely to be somewhere in between $2.5 and $5M. If I was a betting man, which I am
I'd say $3M will be the likely figure.
When it does come in, will you be able to take the extra out even if you are under preservation age rather than pay the higher tax rates that will come in for high balances? I'd like to think so but not sure if that will happen.
If you are still working and have a high balance, could you take the employer contributions as wages instead of going into your Super if you wish? Makes sense to me, at least at an optional availability. Again, not sure if this will happen.
