Last week, the Government announced a range of proposed changes to the superannuation laws. The aim of the changes is to create what they believe will be a more equitable and sustainable retirement income system.
The following is a summary of the announced changes to superannuation:
1. Changes to the tax exemption for earnings on superannuation assets supporting income streams
- assets that were purchased before 5 April 2013, the reform will only apply to capital gains that accrue after 1 July 2024;
- assets that are purchased from 5 April 2013 to 30 June 2014, individuals will have the choice of applying the reform to the entire capital gain, or only that part that accrues after 1 July 2014; and
- assets that are purchased from 1 July 2014, the reform will apply to the entire capital gain.
2.Increasing the concessional caps for certain superannuation members
- From 1 July 2013 taxpayers aged 60 and over will have a $35,000 cap; and
- From 1 July 2014 taxpayers aged 50 and over will have a $35,000 cap.
3. Reform of the Excess Contribution Tax treatment of excess concessional contributions.
4.Council of Superannuation Custodians
5.Extending normal deeming rules to superannuation account based income streams
6.Extending concessional tax treatment to deferred lifetime annuities
7.Changes to the arrangements for lost superannuation
How will these changes affect you?
Contact us today to find out how these recent changes are likely to affect your superannuation, and to identify if you should make changes to your existing arrangements: (03) 8888 4000 or email@example.com.