New superannuation initiative commences

Minister for Revenue and Financial Services Kelly O’Dwyer said the new measures will allow individuals to catch up on their retirement savings by accessing the unused part of their concessional contributions caps.

People will be able to access their unused concessional contributions cap for five years, after which the amounts not carried forward will expire, according to a statement from the ATO.

The first year an individual can tap into their unused concessional contributions is 2019-20.

According to Ms O’Dwyer, the new measures aim to help those who have had to take time off work because of an illness, injury, carer responsibilities or study.

“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.

“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.”

According to the ATO statement, individuals can only carry forward their unused concessional contributions cap if their total super balance is under $500,000 at 30 June of the previous financial year.