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Superannuation – has the Budget affected your retirement funds? In the recent 2009 federal Budget superannuation contribution criteria has been adjusted in response to the current financial situation. As a compulsory requirement for all employers, superannuation payments are beneficial to workers across the country as it provides them with a level of financial certainty when it comes time for retirement. The main changes that have been introduced by the Budget affect salary-sacrificed and employer-paid superannuation contributions, people over the age of 50 and participants in the government’s co-contribution scheme. From 1 July 2009, the limit on salary-sacrificed and employer-paid superannuation will be set at $25,000 a year, which is half the current limit. For people over 50, the cap will also be halved to $50,000, and from 2012-2013 people over 50 will also be included in the lower $25,000 cap. It can bee seen that this is perhaps one of the Government’s attempts to generate some revenue as by capping the contribution limits employees will now have to find alternative means for storing or investing their money. It is more than likely these other forms will be taxed at a higher rate than the super funds and hence this creates extra revenue for the Government. In addition, the government’s contribution to the superannuation co-contribution scheme will be temporarily reduced for three years. This will give the government a saving of almost $1.4 Billion over the next four years. Employers should also be aware that in order to avoid incurring penalties, the minimum super contribution of 9% for all employees between 18 and 65 years who earn more than $450 per month must be made before 28 July. However, in order to be eligible for the full tax deduction all superannuation payments must be made prior to June 30. The accounting and tax professionals at the Quinn Group pride themselves in always being updated in present and pending changes to superannuation. If you have any queries or would like more information please do not hesitate to contact us on 1300 QUINNS or click here to submit an online enquiry. |
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Disclaimer: The contents of this document titled “The Quintessential Brief” (the ‘Material’) are provided as general information only. It is not intended to be given as advice and should not be relied upon as such. If you are concerned about any issue raised by the Material then you should seek your own professional advice. No warranty is given in relation to the accuracy, currency or completeness of the Material. No reader should act on the basis of any matter contained in this publication without first obtaining specific professional advice. Where applicable, liability is limited by the NSW Solicitors Scheme under the Professional Standards Act 1994 (NSW), and other relevant state legislation. The Quinn Group respects your privacy. Should you not wish to receive this newsletter in the future please contact us on 1300 784 667.