The Government has confirmed that it will introduce legislation to deliver 2 of its key superannuation reforms. The measures, announced on 5 April 2013, will allow for the withdrawal of excess concessional contributions without penalty and introduce a $35,000 concessional cap for people aged 60 or over.
- As noted above, the Government has released for comment exposure draft legislation proposing to implement the $35,000 concessional contributions cap for people aged 60 and over from 1 July 2013 (or 1 July 2014 for people aged 50-59) instead of the general concessional cap of $25,000.
- Separately, the Minister for Financial Services and Superannuation said the Government will seek to introduce legislation to allow all individuals to withdraw from their superannuation fund (without penalty) any excess concessional contributions made from 1 July 2013. Instead, the withdrawn excess contributions will be taxed at the individual’s marginal tax rate (plus an interest charge), rather than the top marginal tax rate. This reform seeks to ensure that individuals are taxed on excess concessional contributions (ie above $25,000, or $35,000 for those aged 60 and over) in the same way as if they had received that money as salary or wages and had chosen to make a non-concessional contribution, Mr Shorten said.
Source: Minister for Financial Services and Superannuation media release No 031, 7 May 2013
[LTN 86, 8/5/13]