As we previously advised to members, the 2009 Federal Budget included some changes regarding super contributions.
The relevant legislation has now been passed, with the Tax Laws Amendment (2009 Budget Measures No.1) Act 2009 receiving Royal Assent.
This means that from 1 July 2009,
- Concessional contributions caps are reduced to $25,000 (or a transitional limit of $50,000 if you are over 50) per year from 1 July 2009. If you have a DB account at 12 May 2009 and don’t increase your contribution rate, provisions have been made to protect you from excess tax on notional employer contributions.
- Non-concessional contributions caps will not be indexed (i.e. increased) on 1 July 2009 but will stay at $150,000 (or $450,000 over 3 years).
- The co-contribution will match up to $1,000 of personal contributions for eligible people. This rate reduction is temporary and will increase again from 2013
- Income stream members can withdraw half of their projected annual drawdown minimum until 30 June 2010
Also note that from 1 July 2009, your salary sacrifice super contributions will now count towards your assessable income for means test purposes for some Government payments and benefits, including the super co-contribution, family assistance payments, child support payments and seniors card eligibility.