Big four firm tips good news on lifetime cap
One of the big four firms believes good news should be on the horizon for SMSF clients looking to contribute their personal injury claims to super.
It is unclear in the federal budget papers on the $500,000 non-concessional contribution cap whether there would be a carve out for taxpayers who receive personal injury payments.
Those receiving these payments are currently given a 90-day window to put that money into superannuation, without it being counted towards their non-concessional cap.
Speaking to SMSF Adviser, KPMG director Ross Stephens said while there will not be absolute certainty until legislation is introduced, he sees "no reason" why the carve out will not continue if the lifetime cap comes into effect.
"Because it’s not yet in law we can’t be absolutely certain, but the expectation is that it is going to stay," Mr Stephens said.
Further, KPMG partner Dana Fleming told SMSF Adviser the carve out has not been addressed in any of the budget or election announcements, as it may have been if there was a change in its policy intention.
Colonial First State’s executive manager Craig Day also told SMSF Adviser he believes that it is "reasonable to conclude" that the carve out will carry through to new legislation.
However, he also stressed that there is “always a risk” on giving advice for legislation that has not yet been passed.