Although there has been a tremendous amount of fighting within parliament (and that’s not even against different parties!), the politicians have actually had time to pass some laws. Below is a list of some of the super laws that have come into play.
- Higher Concessional Contribution caps – as announced in the budget and outlined in last months e-newsletter the contribution caps for those over 60 years will increase to $35,000pa from 1 July 2013. For those over 50 years, you will have to wait until 1 July 2014 to get access to the $35,000pa limit. Everyone else remains at $25,000pa.
- Higher tax for those earning over $300,000pa – the 2012 budget announcement of imposing an additional 15% on super contributions for those earning over $300,000(with super and reportable fringe benefits) has been passed and has a retrospective start date of 1 July 2012. Therefore anyone earning over $300,000 in the calendar year that has just finished will be slugged an additional 15% on their super contributions. The ATO will match the super funds contributions with the taxpayers personal tax return and issue an assessment to the taxpayer. Like the excess contributions tax rules, the taxpayer will be entitled to get this additional tax from the super fund.
- Higher SMSF Levy – this levy has increased to $300 from 1 July 2013. Instead of obtaining this through the smsf tax return, each fund will be sent an invoice to pay this throughout the year.
- Off market transfers – one piece of legislation that was proposed has been withdrawn by the government. Taxpayers will still be allowed to make contributions to super through in specie off market transfers of listed securities. This legislation was supposed to be implemented from 1 July 2012, delayed until 1 July 2013 and now withdrawn. Some good news for once!
If you require further information in relation to these rules please contact Simon Flowers, Matthew Grapsas or Cathy Walley of our office.