Bills introduced to Lower House

The Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013 was introduced into the House of Reps on Wed 15.5.2013 [the morning after the budget]. The amendments are as follows:

  • Higher concessional contributions cap – the Bill proposes to amend the ITAA 1997 and the Income Tax (Transitional Provisions) Act 1997 to increase the concessional contributions cap temporarily to $35,000 for the 2013-14 financial year for individuals aged 60 years and over, and to $35,000 for the 2014-15 financial year and later financial years for individuals aged 50 years and over.  The temporary cap will cease when the general cap indexes to $35,000. DATE OF EFFECT: applies to the 2013-14 financial year and later financial years.
  • Extra 15% contributions tax for incomes above $300,000 – the Bill proposes to amend the income tax and superannuation law and the TAA to reduce the tax concession for concessionally taxed superannuation contributions of very high income earners by 15%.  The Superannuation (Sustaining the Contribution Concession) Imposition Bill 2013 also introduced into the House of Reps on Wed 15.5.2013, contains the mechanism by which the tax concession is reduced. The Bill also proposes consequential amendments to legislation concerning some of the Commonwealth defined benefit superannuation plans where members of those plans are affected by the reduction in the tax concession for concessionally taxed superannuation contributions. DATE OF EFFECT: applies to concessionally taxed superannuation contributions for the 2012-13 income year and later income years.
  • Low income superannuation contribution – the Bill proposes to amend the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 in order to make technical changes to ensure the low income superannuation contribution operates effectively. DATE OF EFFECT: applies to the 2012-13 income year and later income years.

[LTN 92, 15/5/13]

Passed Lower House and moves to Senate

The Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013 was on Wed 29.5.2013 passed by the House of Reps without amendment and now moves to the Senate.

[LTN 102, 29/5/13]

Draft regulation sets out the class of persons that are State higher level office holders

The Government on Fri 31.5.2013, released for public consultation an exposure draft of the Income Tax Assessment and other Legislation (Sustaining the Superannuation Contribution Concession) Amendment Regulation 2013.

The draft regulation sets out the class of persons that are State higher level office holders and the methodology for calculating notional contributions for defined benefit interests. The draft regulation supports the changes contained in the Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013 and Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Bill 2013 concerning the insertion of a new Div 293 in the ITAA 1997 to effectively double the contributions tax to 30% on concessional super contributions for those earning over $300,000pa. Once finalised, the Regulation would be taken to have commenced on 1 July 2012.

COMMENTS are due by 6 June 2013.

[LTN 104, 31/5/13]