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| Super changes
pass By Mrs Heather Gill, Acting Director Superannuation Volume 49, No. 4, March 22, 2007 |
| THE proposed superannuation changes reported
in the last edition of AIR FORCE News have been passed and will take effect
on July 1. ADF members need to think carefully about how they will be affected by the new laws, which include changes that affect pre-tax contributions, such as salary sacrifice. From July 1, contributions made from pre-tax income will be called concessional contributions. For Defence members, these will include: - any salary sacrifice contributions, - an amount for each member representing their MSBS or DFRDB employer benefit, and - any non-Defence employer contributions. Concessional contributions will be taxed as follows: - Concessional contributions will be taxed at 15 per cent. - They will be capped at $50,000 a year (cap to increase annually). - For members aged 50-74, the cap will be $100,000 from 2007-08 to 2011-12 only. - Any concessional contributions over the cap will be taxed at a total of 46.5 per cent. - If you do not give your tax file number to your super fund, all concessional contributions will be taxed at 46.5 per cent. As soon as Defence knows the amount for MSBS and DFRDB employer benefits to be calculated, details will be passed on to members. These changes will affect ADF members who are thinking about sacrificing salary into super. This is especially important for members who are eligible for a retention or completion bonus and intend to put it into super. Changes to post-tax contributions will be covered in the next edition. For more information, visit www.simplersuper.treasury.gov.au or www.fido.gov.au |