The 2011 Federal Budget made important changes to superannuation measures that can potentially impact upon the way you manage your employee’s superannuation contributions, as well as your own. You should be aware of these so that you can assist your employees in making decisions related to superannuation.
Excess Concessional Contributions
For contributions made on or after 1 July 2011, taxpayers who breach the concessional contribution cap by up to $10,000 may be able to request the return of the excess. This will then be taxed at their marginal rate.
Pension draw down relief
For the 2011-12 year, the reduction in the minimum pension will be 25%. For the 2012-13 year and onwards, there will be no reduction in the minimum pension.
The following shows minimum annual pension for each age group:
|
Age |
1/7/2011 to 30/6/12 Minimum % Withdrawal (25% reduction) |
From 1st July 2012 |
|
Under 65 |
3.00% |
4% |
|
65 – 74 |
3.75% |
5% |
|
75 -79 |
4.50% |
6% |
|
80 – 84 |
5.25% |
7% |
|
85 – 89 |
6.75% |
9% |
|
90 – 94 |
8.25% |
11% |
|
95+ |
10.50% |
14% |
Concessional Contributions cap for people aged 50 and over
The government has announced that from 1 July 2012, the concessional contributions cap for individuals aged 50 with less than $500,000 in superannuation, will be $50,000.
Improved identification of superannuation
There will be enhanced reporting measures to assist with identification of lost super.
SMSF Levy to increase
The government has also announced that as of 1 July 2012, the levy will increase from $150 to $180.
Reporting of employer contributions on payslips
Employers will be required to include the amount of super contributions actually paid into employees’ super accounts on payslips. Super funds will also be required to notify employees and employers on a quarterly basis if regular payments cease.
Our experienced team of Accountants and Financial Planners can assist you with all of your superannuation needs. If you have any queries with regards to these new changes and how they may affect your business submit an online enquiry or call us on 1300 QUINNS (784 667).
