Minister for Revenue and Financial Services and for Women Kelly O’Dwyer said on Thursday that the measure, which came into action on 1 July 2018, will help savers, and especially women, save more.
Savers with balances of less than $500,000 will be able to make “catch-up” payments by accessing unused portions of their concessional contributions caps. Savers can carry forward the unused space for five years.
“The Turnbull government’s superannuation taxation reforms have given individuals, especially women, more control over their superannuation savings and will support their economic security in retirement,” Ms O’Dwyer said.
“This important measure will make it easier for those with interrupted work patterns to save for retirement and benefit from the tax concessions commensurate with individuals who have a regular income.”
Ms O’Dwyer said the measure is a recognition of the “reality of modern careers” and will help those forced to take time from work for illness or injury, or to undertake a caring role or further study.