Superannuation was not a key focus of this year’s Federal Budget, but some proposed changes were announced which may impact some AvSuper members. Of course at this stage the changes are proposals only and not yet law and as always we will keep you informed as the legislation progresses.
What did the Budget include?
A full break down of the relevant changes in is our 2011 budget fact sheet, but some of the highlights are:
- Income stream members can still access drawdown relief, although the level of relief is halved for the 2011-12 year and removed altogther from 1 July 2012
- A refund of contributions mechanism to allow members who inadvertently break their concessional contributions limits to make adjustments to avoid excess tax
- from 1 July 2012, if you are over 50 and have less than $500,000 in super, your concessional contributions limit will be $25,000 above the main concessional limit
- Co-contribution thresholds are not changing for the 2011/12 year