An extract from the Liberal's policy papers on superannuation
What does it all mean ?
"A proportionate method which measures the
percentage of the cap previously utilised will
determine how much cap space an individual has
available at any single point in time.
―― For example, if an individual has previously used
up 75 per cent of their cap they will have access
to 25 per cent of the current (indexed) cap
• Subsequent fluctuations in retirement accounts due
to earnings growth or pension payments are not
considered when calculating cap space.
Those individuals already in retirement as at
1 July 2017 with balances in excess of $1.6 million will
need to either:
• transfer the excess back into an accumulation
superannuation account; or
• withdraw the excess amount from their
superannuation.
Individuals who breach the cap will be subject to a
tax on both the amount in excess of the cap and the
earnings on the excess amount."
