Superannuation Reform – 5th April 2013

Penguins

On Friday 5 April 2013, the Government announced a number of future reforms to Australia? superannuation system. Set out below is an overview of the announcements made:

  • Superannuation funds that derive income in excess of $100,000 will pay an additional rate of tax
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  • There is no change to the tax free status of payments a client can received from superannuation funds after the age of 60.
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  • Higher concessional contribution caps will be re-introduced resulting in the ability for individuals over 60 to contribute $35,000 into superannuation and claim a tax deduction.
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  • Where a client exceeds their concessional cap, they will have the ability to avoid the excess contributions penalty tax.
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  • New superannuation income streams commenced after 1 January 2015 will be subject to Centrelink? deeming rules applying to financial investments generally.
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  • The threshold below which ?ost?or ?nactive?super accounts will be sent to the ATO will increase from the current $2,000 threshold to $2,500 from 31 December 2015 and then to $3,000 from 31 December 2016.

Joel Xuereb