On 8 May 2012 Treasurer Wayne Swan delivered his fifth Federal budget. There are a number of announcements of which financial planners and their clients should be aware. The announcements in this Technical Update are proposals unless stated otherwise. These proposals need to successfully pass through Parliament before becoming law and may be subject to change during this process.
The proposed higher $50,000 concessional contributions cap for individuals aged 50+ with less than $500,000 in superannuation will be deferred until 1 July 2014. A concessional contribution cap of $25,000 will apply to all individuals for the 2012/13 and 2013/14 financial years. These, amongst other measures, were announced in the 2012/13 Federal Budget.