The government has passed legislation impacting people who hold their personal injury compensation proceeds in a superannuation pension account.
The new law makes clear that these funds (the balance of their pension account) will not be counted against the $1.6m cap on funds that can be held in a super pension that will apply from 1 July 2017.
Today in a press release Senator Mathias Cormann, Minister for Finance, Acting Minister for Revenue and Financial Services, announced that these changes are now in effect.
Any personal injury money contributed into super and held in a pension as at 1 July 2017, including the growth on that contribution, will not be counted against the cap.
This is a great relief for many Australians with disabilities who know that they need every cent of their compensation (and its investment earnings) to support them.
Thanks to those who assisted Aeran in the lobbying effort and to the Assistant Treasurer's office for their swift action.