|Home||Services||Our Team||About||Conferences||Careers||News & Events||Contact|
|Accounting & Taxation|
|Loans & Leasing|
|Admin & Specialist Team|
|BMO Financial Solutions|
|BMO Lending Services|
|The BMO Story|
|Training & Technology|
|What our Clients Say|
|Newsletters & Fact Sheets|
|BMO in the News|
2nd December 2011
The Government recently announced a handful of superannuation changes as part of their Mid-Year Economic and Fiscal Outlook. So how will these changes affect you? Here is a list of the announced changes, remember, if you have any queries, please feel free to contact us to talk about your individual situation.
• Reduction in the super co-contributions from July 2012 with the maximum amount to drop to $500, with the matching rate decreasing to 50% and the cut off income level decreasing to $46,920.
• Continuation of the 25% reduction in minimum payment amounts for account based, allocated and market linked pensioners for 2012/13 financial year. This extension of draw-down relief will give some self-funded retirees assistance.
• Concessional contribution cap will now stay at the current level until 1 July 2014, when it is expected to increase to $30,000. So for individuals under 50 years of age, the standard cap will remain at $25,000 for 2013 and 2014 financial years.
• The clause in some super fund trust deeds which seeks to treat some contributions recived as 'not accepted' to avoid excess contributions tax, will be deemed accepted as the government aims to change the law, and over ride these trust deed clauses.
• The Government will undertake further consultation on compliance cost issues raised by industry in relation to the proposed higher concessional contributions cap for those aged 50 and over. It was proposed that individuals aged over 50 could make deductible contributions of up to $50,000 if their super fund balance was less than $500,000.
• As the Government has previously announced, individuals earning up to $37,000 will effectively pay no tax on their superannuation guarantee (SG) contributions from 1 July 2012. Under the LISC, the 15% contributions tax will effectively be refunded into their superannuation accounts.
Some other non-super changes worth mentioning include:
Personal income tax reform - Dependent Spouse Tax Offset
The Government will restrict the Dependent Spouse Tax Offset to those with spouses born before 1 July 1952, effective from 1 July 2012. This reform will not affect people whose spouse is an invalid or a carer, or who receive the zone, overseas forces or overseas civilian tax offsets.
• The start date of the standard deduction for work related expenses will be deferred until 1 July 2013.
• The start date of the 50% tax discount for interest income will be deferred until 1 July 2013, allowing more time for consultation with stakeholders on issues previously raised by industry.
Disclaimer – Information provided in this fact sheet has been sourced from Australian Tax Office and is general in nature. In preparing this information BMO has not taken into account any particular person’s objectives, financial situation or needs. We recommend you obtain financial advice specific to your situation before making any financial decisions or investments.
29th May 2013
This is your chance to join one of the region’s leading accounting, business services and financial planning firms. We are seeking a professional with accounting and taxation experience... Read More
Is your business getting noticed?
18th July 2013
Get tips and tactics on how to best market your business at this month’s Breakfast at BMO. Read More
Budget wrap up
24th May 2013
With the September 14 election only 4 months away now, one could be excused for thinking that this year’s May Budget may be somewhat hypothetical. Read More
Use the rate cut wisely
8th May 2013
The Reserve Bank’s decision this week to cut interest rates by 25 basis points to a historic low of 2.75 per cent has come as a surprise to many economists who had expected the RBA to wait until June or later to lower rates. Read More