ANZ Smart Choice Super Investor Update : Investor Update 2012
12 Increased contributions tax for very high income earners The Government has proposed that from 1 July 2012, individuals with incomes greater than $300,000 may have certain concessional contributions taxed at 30% (increased from 15%). The higher rate will not apply to concessional contributions exceeding the concessional contributions cap. These are already subject to the ‘excess contributions tax’ rate. Reduction to government co-contribution amounts Further reductions to the co-contribution scheme have been proposed from 1 July 2012. The maximum co-contribution is to reduce from $1,000 to $500, the co-contribution rate is to reduce from $1.00 to $0.50 and the higher income threshold is to decrease from $61,920 to $46,920. Earlier proposals which are now law Low Income Superannuation Contribution From 1 July 2012, the Low Income Superannuation Contribution will effectively refund up to $500 of contributions tax to people who earn up to $37,000 in adjusted taxable income. Superannuation Guarantee increased and age limit abolished The SG rate will progressively increase from 1 July 2013. The current SG rate of 9% will continue to apply in 2012/13, before rising progressively to 12% by 2019/20: Financial year Superannuation Guarantee Rate 2012/13 9% 2013/14 9.25% 2014/15 9.5% 2015/16 10% 2016/17 10.5% 2017/18 11% 2018/19 11.5% 2019/20 onwards 12% The SG age limit of 70 will be removed from 1 July 2013, and employers will be required to contribute to complying super funds of eligible employees aged 70 and older. Extension of minimum drawdown relief Temporary relief on minimum pension payments has been extended to the 2012/13 financial year. Minimum pension payments will continue at 75% of the standard legislated minimum. For more information on these changes, please visit ato.gov.au.
Member Update Autumn 2013