Description
Proposals for changes to superannuation and personal income tax rates were announced in the Federal Budget on 9 May 2006.
Detailed Outline
Proposals for changes to superannuation and personal income tax rates were announced in the Federal Budget on 9 May 2006.
Superannuation
The superannuation proposals would be effective from 1 July 2007 if they are legislated. One of the proposals is to remove tax on benefits paid to people aged 60 and over. Other proposals include those relating to the level of contributions that would be taxed concessionally when made from pre-tax income (including salary sacrifice contributions) and a limit on the amount of contributions which could be accepted from post-tax income.
A full outline of the proposals is available on-line in a Federal Government paper called “A plan to simplify and streamline superannuation” atwww.budget.gov.au/2006-07/overview2/download/overview2.pdf
The proposals may change before 1 July 2007. The Federal Government has also indicated that it may need to consider special rules for defined benefit funds.
FTC has advised that on 14 July 2006, Mr Brad Pragnell, Principal Policy Advisor from the Association of Superannuation Funds of Australia, will provide a briefing for employers on the superannuation proposals in the Federal Budget. FTC will be writing to employers separately. Further information in relation to the seminar is available from Ms Ning Wong on 9238 2519 or email [email protected].
Personal income tax rates
Proposals to change personal income tax rates and tax thresholds were also announced in the Federal Budget. The proposed rates are available on-line at www.budget.gov.au/2006-07/at_a_glance/html/at_a_glance.htm#tax_cuts
Employees and officers who are salary packaging or salary sacrificing to superannuation may need to consider the impact of the proposed changes on their arrangements.
C Gellatly
Director-General
Issued : Employee Relations & Workforce Planning Services (Public Employment Office)
File no: PSM/08528-1
Date: 27 June 2006
This circular has not superseded any other Memorandum/Circular
Overview
Compliance
- Not Mandatory
AR Details
- Date Issued
- Jun 27, 2006
- Review Date
- Dec 31, 2014
- Replaces
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- Replaced By
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Contacts
- Contact
- Contact us
- Phone
- 02 9228 5555
- Publishing Entity
- Department of Premier and Cabinet
- Issuing Entity
- Department of Premier and Cabinet