Home >  Blog >  Superannuation changes

Superannuation changes

Posted by medicalfinancial on 10 July 2013

The current Government has proposed a number of changes to Superannuation over the last year and the following have now become law having recently received royal assent.
 

The concessional contribution cap has increased from $25,000 to $35,000 for those aged 59 and over on 30th June 2013 and over 49 on 30th June 2014. Good news for older Australians who want to increase superannuation contributions tax effectively as they move closer to retirement.
 

Not so good is the reduction in the superannuation tax concession on concessional contributions from 30% to 15% for people who earn $300,000pa or over, including defined benefit members. This change will affect a number of Doctors and reduce the tax effectiveness of their concessional superannuation contributions.
 

Finally, the superannuation co-contribution maximum payment has been reduced from $1,000 to $500 with a reduction in the taper rate from $1 to 50c and a reduction in the income cut-off threshold from $61,920 to $46,920.
 

The reduction in the superannuation tax concession and co-contribution rates are effective from 1st July 2012 so Doctors who earn over $300,000 should expect an additional tax liability for the 2012/13 financial year.
 

If you would like to understand any of these changes in more detail please don’t hesitate to contact Medical Financial Planning.
 

Author: medicalfinancial
Tags: News Tax Wealth Creation

Post comment

Latest News

View all news

Taxing times - why playing the long game is the key to surviving political uncertainty

Posted by Matt Connor on 22 May 2019
It's always an interesting time during election campaigns, when the country wait...

ATO Data Matching Changes - What You Need To Know

Posted by Mary Young on 17 April 2019
For a long time, the ATO has been using data-matching practices to ensure individual...

In or out? Insurance within super isn't all it's cracked up to be.

Posted by Sean O'Kane & Neal Durling on 27 March 2019
The fields of insurance and superannuation are complex and filled with both options,...
< Previous | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Next >

SIGN UP

For Events and News


The information on this site is of a general nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.

The financial planning services are provided by Medical Financial Pty Ltd trading as Medical Financial Planning (AFSL 506557)