On 2 May, the Government released the Henry Tax Review report along with its recommendations. As well as replying to the Review’s recommendations , the Government announced the following superannuation reforms:
- The maximum age for the Superannuation Guarantee (SG) is to increase from 70 to 75 from 1 July 2013
- The SG rate will gradually increase to 12% (this was not in the Henry Review recommendations):
- The introduction of a government contribution of up to $500 for workers with adjusted taxable incomes up to $37,000. The $500 will not be indexed and is separate from the Government co-contribution scheme.
- The concessional contribution cap will be increased to $50,000 (indexed) from 1 July 2012 for those aged 50 or over with total superannuation balances of less than $500,000.
We will let you know when the reforms become law.
Member Services Manager