Proposed Superannuation Rule Changes

Author: Stephen Rockliff
Publish Date: May 19, 2006

If the plans announced by the Treasurer in last week's Budget are implemented as proposed, the government will:

Abolish tax on both super lump sums and pensions from age 60
Allow older people to stay in super whether they are working or not
Extend the maximum age of people who can claim deductions and super contributions to 75
Abolish the reasonable benefit limits which restrict how much you can take out of super with tax extensions
Introduce a cap of $50,000 a year for tax deductible super contributions regardless of age but limit undeducted contributions to $150,000 a year
Allow the self-employed a full tax deduction on their super contributions and access to the government's co-contribution
Simplify a retirement pension so that only a minimum payment is required each year, with no upper limit on payments
Relax the age pension assets so that retirees are penalised less heavily for having savings over the minimum limited

It is proposed that most of the changes will come into effect on 1 July next year.

For further information or assistance please contact Rockliffs on 02 9299 4912 or email us at lawyers@rockliffs.com.au