In the 2016 federal budget, the government proposed to create, effective 1 July 2017, a new cap of $1.6 million on amounts that can be moved into the tax-free pension phase, where previously there was no such limit. Members who have a balance in a retirement phase account in excess of this limit will have until 30 June 2017 to either return the excess funds into accumulation phase or take the money out of superannuation. Retirement phase accounts in excess of this limit will be taxed at 15% on earnings, the same as for an accumulation phase account.