Mid Year Budget Review - Superannuation Changes

By Jason Fittler

The Government is focused on having a budget surplus next financial year.

To do this they have taken some measures to cut costs and increase tax revenue.

Below are a couple of issues you should be aware of in regards to your superannuation.

  1. Concessional Contributions Caps - starting 01/07/2012 the maximum concessional contribution you can make regardless of your age is $25,000. Previously, if you were over age 50 you could make up to $50,000. It is important to review your salary sacrifice if you have one to make sure you do not exceed the cap. If you do exceed the cap you will have to pay penalty tax. 
  2. The Co-Contribution has been halved from $1,000 to $500 starting 01/07/2012. Again you should be aware of this prior to making any co-contributions to your super. 
  3. Your annual Pension Payments have remained at 75% of the required minimum. This allows you to continue to take less out of your super fund for the 2012 year.”

There are also a number of changes in regards to your taxation and deduction claims allowable, which I will touch on next week.