All super changes previously expected bar one…
Deloitte Federal Budget media releaseDOWNLOAD
Tuesday 8 May 2012: Of the five changes to the superannuation industry announced in the Federal Budget on Tuesday, all were expected with one surprising change. Russell Mason, National Superannuation leader at Deloitte said: “The only real surprise in the Budget announcement was that the increase in the concessional cap for the over 50 age group with superannuation balances of less than $500,000 has been deferred for two years. The industry expected this reform to be introduced before that date.
“This is disappointing,” he said. “But understandable based on the administrative complexities of introducing this new cap in the original time frame.
“It is however, another impediment for those who are planning to maximise their savings for retirement.
“The Government has estimated that this saving is worth $1.46 billion over two years, which equates to approximately $8.5 billion less in savings for retiring Australians.
“This is a significant loss of superannuation savings for those approaching retirement.”
The other superannuation changes were the increase in the Superannuation Guarantee (SG) to 12%, an increase in the age limits for SG contribution, the increase in the tax on concessional contributions for high income earners, and the Low Income Superannuation Contribution which will effectively rebate the contributions tax up to an amount of $500 for those earning less than $37,000 per annum.