Superannuation Changes
The 2011-2012 Federal Budget did not deliver any huge superannuation changes to the superannuation industry. There were however a number of proposed minor changes to further refine the ability for fund members to locate multiple super accounts, higher concessional contributions caps, and stronger SMSF reforms.
The following is a summary of the proposed major superannuation changes which may affect Australians with superannuation savings:
Excess concessional contributions refund
If you breach the concessional contribution caps by up to $10,000, you can request a refund for the excess amount only once.
Personal tax rates will apply to the refunded amount.
Minimum payment for account-based pensions reduced
The minimum payment amounts for account-based, allocated and market linked (term allocated) pensions will be reduced by 25%, however it has been proposed to return to standard rates minimum rates after 2012.
Stronger super SMSF reforms
The Government is increasing the annual levy by $30 to $180 for each SMSF payable on lodgement of the fund's 2010-2011 tax return.
The monies raised will be used to implement the Stronger Super self managed superannuation fund reforms.
The proposed changes include:
- The introduction of a new administrative penalty framework,
- Registration of fund auditors subject to competency and independence standards,
- Improved data collection, and
- Improvements to the self managed superannuation fund registration process.
Gains or losses of certain assets now subject to CGT
An amendment to the income tax law will ensure CGT will be applied to gains or losses on specified assets (this includes shares, units in a trust and land).
Previously announced superannuation changes
Many of the superannuation changes were previously announced and include:
- A higher concessional superannuation contributions cap will apply for eligible individuals aged 50 and over with total superannuation balances of less than $500,000. The additional concessional superannuation contributions are $25,000 above the general contribution cap and will apply from 1 July 2012.
- An extension has been given to the temporary loss relief for complying superannuation funds that merge. The date has been extended by three months, from 30 June 2011 until 30 September 2011.
- Super funds can now use tax file numbers (TFNs) to identify and locate accounts, which should assist with the consolidation of multiple member accounts.
- Employee pay slips must now detail the amount of super paid on behalf of the employee.
- Super funds will be required to provide employees and employers with quarterly notification if regular super contributions cease with effect from 1 July 2012.
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September 2011
