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Individuals affected by superannuation budget measures

ASFA Statement: 2 June 2016

ASFA Statement: 2 June 2016

Individuals affected by superannuation budget measures

Individuals affected by superannuation budget measures

The Association of Superannuation Funds of Australia (ASFA) acknowledges the ongoing interest in the number of people potentially impacted by the superannuation measures announced in the May 2016 Budget.

In this context to inform the debate, ASFA has prepared a consolidated set of figures that outlines the revenue impacts and estimated number of people affected by each of the measures. 

According to Australian Taxation Office statistics, around 14 million Australians have a superannuation account. ASFA estimates that up to 1.26 million people will be detrimentally affected by the proposed budget measures.*

ASFA also estimates that over 4.3 million people will be better off as a result of the proposed measures, this includes low income earners.

Individuals affected by the new measures

  $ million (extra tax over Forward Estimates) Individuals affected
$1.6 million transfer cap 1,995 110,000
$25,000 concessional contribution cap and lower Div 293 threshold 2,443 Up to 500,000 (many of these affected by both)
Lifetime non-concessional cap 550 80,000
Transition to Retirement change 640 550,000 plus
Anti-detriment abolition 350 20,000 (annual)
Total 5,978 Up to 1,260,000

Individuals to receive a benefit from the changes

  $ million (cost over Forward Estimates) Individuals affected
Low Income Superannuation Tax Offset 1,605 3,200,000
Tax deduction for personal contributions 1,000 850,000
Catch-up concessional contributions provision 350 230,000
Relaxation of contribution rules for 65 to 74 year olds 130 40,000
Enhanced spouse contribution 10 5000
Total 3,095 4,325,000

The source of the various estimates is from tax revenue and cost estimates from Budget papers.

  • Individuals beneficially affected extracted from Budget papers
  • Individuals adversely affected derived from APRA statistics (Transition to Retirement), Australian Taxation Office SMSF statistics, ATO unit record sample data used for other changes.

*The figures are approximate as detailed data is not publicly available in all cases and various behavioural changes would also impact on individuals affected. Some individuals may be impacted by more than one measure. ASFA’s estimate of the number affected by the Transition to Retirement (TTR) measure is based on official APRA data for 2014-15 and ATO statistics for 2013-14 on the number of such accounts. It is possible that some individuals may have more than one TTR account, and some TTR account holders might be able to satisfy a condition of release for a normal superannuation account based income stream.

For further information, please contact:

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.

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