As many will know a number of significant changes to superannuation legislation were heralded earlier this year.
Some are now “law”…including;
1. increasing the superannuation guarantee from 9% to 12%; this increase is being introduced on a staggered basis – currently it is at 9.25%;
2. an increase in the concessional caps by $10,000 [to $35000] for people aged over 60 (and for people over 50 from 1 July next year); and
3. the abolition of the 15% tax on superannuation for people earning under $37,000 per annum.
The calling of the federal election means that no legislation can be passed in respect to the remaining announced issues.
The most controversial proposal of a $100,000 cap on tax free earnings in the pension phase has not been passed into legislation. This means that account based pension accounts with earnings above $100,000 won’t be taxed….and the Liberal party have already announced the remaining proposals will not be “revisited “if they win the election. These include:
1. increased reporting requirements,
2. an increase in the inactive account threshold,
3. changes around deferred lifetime annuities,
4. an extension of the deeming rules relating to account based income streams, and
5. bringing all financial assets to be assessed under the same rules.