Funds Focus

The Budget made some significant changes to Superannuation. This month saw the Government announce further changes. We have provided some clarification on the implications

The $1.6 million pension cap
Lifetime non-concessional contributions cap of $500,000 Replaced with a reduced Non Concessional Contribution Limit
Reduction in Concessional Contributions cap to $25,000
Catch up concessional contributions
Tax deductible personal contributions
$300,000 threshold for higher

The 2008 Federal Budget contained no major surprises, with many of the measures re-iterating previous announcements (including personal tax cuts). While there were no substantial changes to superannuation, there were still some items of interest for investors. Examples include:

A broader definition of ‘income’ for Government support programs, including co-contributions.

A change to the eligibility thresholds