The Turnbull Government has announced that the catch-up carry forward superannuation measure, under which millions of individuals with balances below $500,000 will be able to “catch up” on their retirement savings by accessing unused portions of their concessional contributions cap, has started this week.
These unused portions can be carried forward for five years to enable extra contributions from 2019-20 onwards where people have the financial capacity to do so, Federal Minister for Revenue and Financial Services, Kelly O'Dwyer MP explained.
“The Turnbull Government’s superannuation taxation reforms have given individuals, especially women, more control over their superannuation savings and will support their economic security in retirement,” she said.
O’Dwyer said this measure “recognised the reality of modern careers” and would be of particular assistance to people who are absent from the workforce because of illness or injury, caring responsibilities or to undertake further study.
“This important measure will make it easier for those with interrupted work patterns to save for retirement and benefit from the tax concessions commensurate with individuals who have a regular income,” she said.
O’Dwyer also took aim at the Labor party, who she said opposed the measure and “would scrap it if they got the chance, preventing these people from being given the opportunity to boost their retirement savings”.
O’Dwyer said this measure completed the implementation of a suite of measures in the 2016-17 Budget that were aimed at improving the fairness and flexibility of the superannuation system.