Thank you all for your replies. I think I should add the following sentences in my post above to make it more complete/clear.:
For either cases of over and under the $1.6m limit, after 1/7/17, the pension account in either case can grow indefinitely and all earnings are tax free.
I agree with what @bacci said above. Let's hope that these new changes are passed into laws soon and we have a few years to grow our pensions before changes. "Soon" as in before 31/10 because I have to submit my compliance statement for FY17 by that date.
