The Coalition Government has reiterated its position on a range of previously announced superannuation and tax issues, as part of the Mid-Year Economic and Fiscal Outlook.
The key take-outs of interest include:
- The next increase in the superannuation guarantee rate to 9.5% will be deferred for two years.
- A range of measures relating to the Mineral Resource Rent Tax that were legislated during the previous Government's tenure will be repealed. This includes the low income super contribution, income support bonus and school kids bonus.
- The 2015 personal tax cuts will not proceed.
- Benefits from the Government's Paid Parental Leave scheme will generally be paid by the Department of Human Services, not the person's employer. Efective 1 March 2014.
- Deeming will be extended to include allocated pensions from 1st January 2015 (for new pensions only)
- The tax of 15% on earnings exceeding $100,000pa from assets held by a member in a superannuation pension will not proceed.
DISCLAIMER: The above information is commentary only (i.e. our general thoughts). It is not intended to be, nor should it be construed as, investment advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Before making any investment decision you need to consider (with your financial adviser) your particular investment needs, objectives and circumstances.