Treasury has released for public consultation an exposure draft of the legislation to implement the higher concessional superannuation contributions cap for older individuals announced by the Government on 5 April 2013 and the accompanying Explanatory Memorandum.
The Government is introducing a higher superannuation contributions cap of $35,000 for older individuals. For individuals aged 60 and over, the new higher cap will apply from 1 July 2013. Individuals aged 50 and over will be able to access the higher cap from 1 July 2014.
The higher cap is temporary and will cease when the general cap indexes to $35,000 (expected to be 1 July 2018).
The closing date for submissions is Monday 13 May 2013.
In media release No 2013/031, issued 7 May 2013, the Minister for Financial Services and Superannuation and Minister for Employment and Workplace Relations, Bill Shorten, commented on the draft legislation.
The Minister also said that "(s)eparately, the Government will seek to introduce legislation which allows individuals to withdraw any excess concessional contributions made from 1 July 2013 from their superannuation fund without penalty. In addition, the Government will tax excess concessional contributions at the individual's marginal tax rate plus an interest charge, rather than the top marginal tax rate."