2011 Australian Government Budget Measures
Refund of excess concessional contributions
Date of effect: 1 July 2011
Changes were outlined to reduce the impact of excess contributions tax on people who exceed their concessional cap for the first time.
Those meeting certain conditions can opt to have their excess concessional contributions taken out of their super fund and assessed as income at their marginal tax rate, rather than incurring the 46.5% excess contributions tax.
This measure will apply to excess concessional contributions up to $10,000 (unindexed) and only for the first year in which an excess contribution occurs. The Government has indicated that consultation on the implementation of this measure will occur.
Minimum pension draw down relief phased out
Date of effect: 1 July 2011
The minimum pension withdrawal you are required to make has been halved in recent years as a result of the Global Financial Crisis and its impact on super balances. This draw down relief will be phased out, reducing to 25% for the 2011/12 financial year and returning to the normal rate from 1 July 2013 as per the following table.
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Age at start of pension (and 1 July each year)
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In 2010/11
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In 2011/12
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In 2012/13
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Under 65
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2%
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3%
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4%
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|
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2.5%
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3.75%
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5%
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75 – 79
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3%
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4.5%
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6%
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80 – 84
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3.5%
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5.25%
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7%
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85 –89
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4.5%
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6.75%
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9%
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90 – 94
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5.5%
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8.25%
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11%
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95 +
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7%
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10.5%
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14%
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Higher pre-tax contribution caps at age 50
Date of effect: 1 July 2012
People aged 50 and over with less than $500,000 in super will be able to contribute an extra $25,000 in pre-tax (concessional) contributions each year.
Eligibility requirements do apply, and the change is scheduled to apply from 1 July 2012.
Those over 50 can make pre-tax contributions of up to $50,000 until 1 July 2012 under concessions previously announced, regardless of their super balance.
Extension of co-contribution freeze
Date of effect: 1 July 2011
Changes introduced in the previous Federal Budget to curb eligibility for the Government co-contribution scheme have been extended out by an additional year.
This means the current income eligibility levels of $31,929pa for a full contribution and $61,920pa for a partial contribution will remain in place until 2012/13.
Reporting of employer contributions on payslips
Date of effect: 1 July 2012
Employers will be required to include the amount of super contributions actually paid into employees’ super accounts on payslips. Super funds will also be required to notify employees and employers on a quarterly basis if regular payments cease.
Supervisory Levy
Date of effect: 1 July 2010
All SMSFs are subject to an annual supervisory levy designed to fund the regulatory costs of ensuring funds comply with their superannuation obligations. As a result of the 2011 Budget, the annual levy will increase by $30 per annum to $180 per annum and is currently payable by SMSFs on lodgment of the SMSF annual return.
Personal Tax
For the first time in nine years, there were no changes to the personal income tax rates and thresholds. This means the 2010/11 rates and thresholds will apply in 2011/12 as tabled below.
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Taxable income range
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Tax payablein 2011/12 (excluding Medicare)
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$0 – $6,000
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Nil
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$6,001 – $37,000
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15% on amount over $6,000
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$37,001 – $80,000
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$4,650 + 30% on amount over $37,000
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$80,001 – $180,000
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$17,550 + 37% on amount over $80,000
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$180,001 +
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$54,550 + 45% on amount over $180,000
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