House of Representatives

Treasury Laws Amendment (More Flexible Superannuation) Bill 2020

Explanatory Memorandum

(Circulated by authority of the Assistant Minister for Superannuation, Financial Services and Financial Technology, Senator the Hon. Jane Hume)

General outline and financial impact

Bring forward non-concessional contribution cap

The current non-concessional superannuation contributions cap is $100,000. The amendments extend the bring forward rule by enabling individuals aged 65 and 66 to make up to three years of non-concessional superannuation contributions under the bring forward rule.

Date of effect: 1 July 2020

Proposal announced: The Bill partially implements the measure Improving flexibility for older Australians from the 2019-20 Budget.

Financial impact: As at the 2019-20 Budget, this measure was estimated to have the following revenue implications ($m):

2019-20 2020-21 2021-22 2022-23
0 -10 -25 -40

Human rights implications: The Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2.

Compliance cost impact: The Bill will result in a small increase in implementation costs for individuals and superannuation funds in the short term. There will be an overall decrease in ongoing compliance costs for individuals and superannuation funds.


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