In early November the Treasurer announced decision plan to abandon some of the previous government’s tax and super proposals and which of the proposals would be proceeded with.
- The proposal to tax super funds’ pension earnings above $100,000pa, currently tax-free, has been abandoned.
- The increased concessional caps of $35,000 for those age 60 now and for those age 50 or more from 1 July 2014 will be retained.
- The Excess Contribution Tax regime for concessional contributions made over the limit will proceed, allowing the extra contribution to be taxed at the marginal rate and allowing members to pay the extra tax from either their super fund or directly.
- The Low Income Super Contribution (LISC) which refunded contributions tax paid by those earning less than $37,000pa will be stopped.
Further detail is provided on our attached factsheet.
If you would like to discuss how these might affect your own super plans, please feel free arrange a time to meet with Michael Rees-Evans CFP SSA ATI Partner – Wealth Consulting.
Important note: this information is of a general nature and has been prepared without taking account of anyone’s financial situation, objectives or needs. Before making any investment decisions based on the contents you should obtain professional advice.