Superannuation Reform - Did you hear the changes?

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Did you hear the announcement that the Labour Government made on 5 April 2013 in regards to the Superannuation Reforms?  If you didn't here is a snapshot of some of the changes that will be made:

  • From July 1 2014, any earnings on superannuation pensions and annuities of more than $100,000 annually will be taxed at 15 per cent, instead of currently being tax-free.  All Superannuation earnings below $100,000 annually will remain tax free.
  • From 1 July 2013, people aged 60 and over will see increased concessional caps from $25,000 to $35,000.  Previously this cap was set to stay at $25,000 till 1 July 2014.  Individuals over the age of 50 will be eligible for this increased concessional cap from 1 July 2014, with general concession cap expect to reach this amount by 1 July 2018.
  • Excess concessional contributions withdrawn from the superannuation fund will be taxed at the individual's marginal rate, plus an interest charge for the tax being collected later than the standard withholding tax from wages.
  • The Government will establish a Council of Superannuation Custodians

So, how will this affect you personally?  Contact AKW Accountants who will review your individual case.

More information can be found at - http://mfss.treasurer.gov.au/DisplayDocs.aspxdoc=pressreleases/2013/020.htm&pageID=003&min=brs&Year=&DocType=0