Proposed Super Changes

by Christie Lewis on May 12, 2010 · 1 comment

in Budget 2010-11

The superannuation contribution levels are:

Taxpayers aged:-	2009/10	2010/11	2011/12
50 and over	$50,000	$50,000	$50,000
under 50	$25,000	$25,000	$25,000

The Government has announced, as part of the Henry Review, changes to the superannuation contribution levels.

From the 1st July 2012 a tax payer aged over 50, who has a superannuation fund balance of less than $500,000, can contribute $50,000 per annum to superannuation.

The Government has announced, following the release of the Henry Review, the superannuation guarantee contributions will increase from 9% to 12% of employees salaries from 2013/14 – 2019/20.

In 2013/14 will be 0.25% to 9.25%; 2014/15 rise of another 0.25% to 9.5%.

Subsequent years will increase by 0.5% in each subsequent year until 2019/20 when the superannuation guarantee will have reached 12%.

The Government will also extend the superannuation guarantee to workers who are aged between 70 and 75 to ensure that they are remunerated on an equal footing with their younger co-workers.

The Federal Treasurer, Mr Wayne Swan, presented the Rudd Government’s budget on 11th May 2010. The Treasurer indicated the budget was a “no frills budget” and it was. This series of posts incorporates a summary of matters within the Federal Budget, the Henry Review and other initiatives that have commenced in 2010 that may affect SME operators. Other than those items which have already commenced in 2010, none of the items contained within the budget, nor the Henry Committee Review, will become law until the budget and the various Henry Committee Review recommendations have been passed by the House of Representatives and the Senate, and signed by the Executive Council.

Article by Christie Lewis

Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.

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