Refunds of excess non-concessional contributions, changes to the Super Guarantee and tighter rules on qualifying social security benefits were the main Budget announcements to impact on superannuation this year. There was no change in preservation age, when you can access super.
These budget changes, along with others announced, should provide a Budget deficit of just under $30 billion in 2014-15 with no surplus due anytime soon.
The key changes proposed for superannuation and social security are as follows, with further detail included in our Super Budget Summary flyer:
- Excess Non-Concessional Contribution Refunding
- Rephasing Superannuation Guarantee
- Increasing of Age Pension Age to 70 from 2035
- Indexing the Age Pension by the Consumer Price Index
- Resetting the Pension Deeming Rate Thresholds to tighten Income Test
- Maintaining Eligibility Thresholds for Australian Government Payments for Three Years
- Commonwealth Seniors Health Card Changes
If you would like some help with identifying how these recent changes are likely to affect your own retirement income planning, please feel free to call Michael on 02 9299 7044 to arrange a time to meet to discuss their impact on your particular circumstances.