Federal Budget 2013

16/05/2013
Provided by Mercer.

The 2013 Federal Budget held no surprises for superannuation members, though it did confirm a series of changes announced in April in the lead-up to yesterday's Budget release.

These announcements include:

  • Changes to the tax-free investment earnings of superannuation income streams where the earnings exceed $100,000 a year
  • Changes to the way the superannuation income streams are assessed by Centrelink
  • An increase to the concessional contributions cap for those aged over 60 from 1 July 2013, to be extended to those over 50 from 1 July 2014
  • Changes to the way excess contributions are treated
  • Concessional tax treatment extended to deferred lifetime annuities
  • The Government also confirmed that it would proceed with plans to double the concessional contributions tax for high income earners.
 

These are simply proposals at this stage and have not come into law so there is no immediate impact on your superannuation account.

Of course, you should speak to an authorised financial adviser to assess the impact on your personal financial situation if you have any concerns or questions.

Whether or not these changes are implemented may depend on the outcome of September's federal election.

The Opposition has indicated, for example, that it will not proceed with the Government's proposed new tax on pension investment income. It has also said it would scrap the recently introduced Low Income Earners Government Contribution.

Read the Federal Budget papers for further information about the 2013 Federal Budget.

 

 

 


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