Summary of Super Changes
The following represents a summary of the major superannuation changes effective from 1 July 2013.
1. Superannuation Guarantee contributions increase – the minimum SG contribution will be raised from 9% to 9.25%. The first increase will be for the September 2013 quarter which is due by 28 October 2013.
2. Superannuation Guarantee contributions for 70 year olds – there will be an obligation for employers to now contribute for employees who are 70 years and over as the upper age limit for SG contributions has been removed. Also worth noting, as a result, employers may now be able to claim SG contributions as a deduction where employee is over 75 and not covered by an industrial award.
3. Higher concessional contributions cap – for those aged 60 and over the cap increases from $25,000 to $35,000.
4. Ability to withdraw excess contributions – individuals can withdraw excess concessional contributions made to their SMSF made from 1 July 2013. We await the details on this process from the Australian Taxation Office.
5. Auditors must be registered – SMSF Auditors must be registered with ASIC from 1 July. Auditors have been able to register since 31 January 2013 and must be issued with an SMSF auditor number (‘SAN’).
6. Ban on off market transfers abandoned – the ‘on again’ ‘off again’ ban has now been removed from the draft legislation. Therefore, off market transfers for listed securities remains in place.
7. Pension minimums increased – the government’s relief on the required minimum pension payments will end with the minimum percentages returning to their ‘pre market downturn’ and Account Based Pensioners resulting in higher minimum pension payments for the 2013/2014 financial year.
8. NSW Stamp Duty on Mortgages to continue. Self Managed Superannuation Funds (SMSFs) with corporate trustees who use limited recourse borrowing arrangement to purchase property in NSW will continue to pay state duty on their mortgage documents for the foreseeable future – NSW is the only State or Territory still imposing this duty.
Here at The Quinn Group our experienced team of Financial Planners and Accountants can provide you with advice and assistance in regards to Superannuation. If you have further questions relating to Summary of Super Changes please contact Peter Quinn by submitting an online enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.