The Australian Federal Government has today announced changes to the superannuation system. The changes, which target super funds with earnings greater than $100,000 per year, will come into place on the 1st of July 2014 should the Labor government be re-elected in the Federal Government elections in Setpember this year. Opposition leader Tony Abbott has pledged that should they be elected in the September elections than he will not pass the changes through.
The changes outlined by the Federal Government include:
- Cap the tax exemption for earnings on superannuation assets supporting income streams at $100,000, with a concessional tax rate of 15 per cent applying thereafter
- The same treatment will be applied to defined benefit funds
- Individuals aged 60 and over will be able to contribute up to $35,000 per annum to their super fund from the 1st of July 2013
- Individuals aged 50 and over rwill be able to access the higher cap from the 1st of July 2014
- There has been a change in relation to Lost Super accounts with the balance threshold for the transfer to the ATO being lifted from $2000 to $3000.
To find out more and how the above changes affect Australian expats please contact us.