So you thought that a $1.6 million super pension limit would be simple, eh? It sounds so straightforward, if not every Coalition MP's cup of earl grey tea with a slice of lemon.
Under the proposed rules, superannuants can put a maximum of $1.6m into a tax-free pension. Any excess must be left in an accumulation account, where it attracts a 15% earnings tax. The SMSF Association has its doubts.
"We believe that the rules in relation to indexation of any unused transfer balance cap are complex and require individual tracking of personal transfer balance caps, in order to avoid access to small increments in the cap. It is our view that this rule adds a level of complexity that is unnecessary for the potential revenue risk.”
