Budget Brief: Superannuation
By way of the exception proving the rule, the Government maintained their promise not legislate further changes to the taxation of the superannuation industry. There are however, still some movements in the area of superannuation that you should remember.
- As previously announced, changes to the contributions caps occur from 1 July 2014. The below table summarises these changes:
* For 2013-14, the concessional cap for individuals who are 59 years or over on 30 June 2013 is $35,000. For 2014-15, the concessional cap for individuals who are 49 years or over on 30 June 2014 is $35,000.
- Effective from 1 July 2013, individuals will be given the option of withdrawing superannuation contributions in excess of the non-concessional contributions cap and any associated earnings. These earnings will be subject to tax at the individual’s marginal tax rate.
- In respect of Superannuation guarantee, the timetable of increasing the superannuation guarantee to 12% has been rescheduled yet again. Effective from 1 July 2014, the superannuation guarantee rate will be lifted from 9.25% to 9.5% which will be maintained until 30 June 2018. The rate will then increase by 0.5% a year until it reaches 12% in 2022/23.
If you have any questions in relation to the budget and how the changes may impact you or your business please contact your relevant ESV engagement partner on 9283 1666.