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Coalition MPs meet on super package

AAP logoAAP 14/09/2016

Coalition MPs are meeting to consider planned changes to superannuation tax concessions.

The changes, announced in the May 3 budget, sparked an angry backlash from sections of the Liberal Party in the run-up to the July election.

The meeting is expected to consider a compromise package following discussions government ministers have had with concerned MPs, Labor and the superannuation sector.

The government initially planned a $500,000 lifetime non-concessional cap on fund balances, backdated to 2007, and a $1.6 million cap on the lump sum that can be used to fund tax-free super income.

Revenue and Financial Services Minister Kelly O'Dwyer said the changes would better target the superannuation tax concessions and improve the sustainability and flexibility of the system.

About 700,000 or 4 per cent of super account holders are expected to be adversely affected by the changes, she wrote in The Australian on Thursday.

Ms O'Dwyer said suggestions that 70 per cent of individuals would be affected by the combination of the government's superannuation tax hikes and age pension cuts were wrong.

"While there is likely some overlap in the numbers affected, at worst, there will be just over a million individuals affected when these combined changes come into effect."

Liberal MP Michael Sukkar is expecting the meeting to be presented with a package that "everyone can live with".

"Hopefully after this partyroom meeting we'll walk out very happy with this package," he told Sky News.

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