Newsletter |
Good News For Retirees!
The Australian Government has introduced significant new legislation to improve superannuation from December 2006, the legislation will:
- make superannuation simpler for retirees
- improve retirement income, and
- provides flexibility, through greater options, on how superannuation can he taken.
Furthermore, legislation will take effect from 1 July 2007 that will mean:
- additional tax may be withheld from super contributions, where an individual fails to supply a tax file number, and
- before tax contributions (also known as concessional, deducted or employer contributions) to superannuation would be limited to $50 000 (indexed annually) per person per year and would be taxed at a fixed rate of 15%. A transitional period would apply for people aged 50 years or over, allowing them to make larger contributions.
There are also a number of transitional arrangements in the proposed changes that can be taken advantage of now. These include the option for individuals to make up to $1 million of after tax contributions (also known as non-concessional or undeducted contributions) to their super before 30 June 2007. The December issue of Super Update (ATO Publication) contained a lot of information about excess contributions, including answers to frequently asked questions and key dates.
Source: www.ato.gov.au |
|
Newsletter |