Today in a letter to Aeran the Treasurer, Scott Morrison, has clarified the impact of the Government's superannuation reforms announced in the 2016-17 Budget on personal injury clients.
The Treasurer has confirmed that the proposed $1.6m cap on funds held in the retirement phase of superannuation will exempt personal injury funds contributed into superannuation.
This is a great relief to those who currently hold their personal injury settlement funds in an account-based pension and those who may seek to establish such an arrangement in the future.
This means that seriously and catastrophically injured people will be better able to support themselves and remain independent for as long as possible.
Thank you to the the Treasurer's office, the Assistant Treasurer's Office, the Australian Lawyers Alliance, the Financial Planning Association of Australia and the Financial Services Council for their support in obtaining this clarification.