Date of article: September 2006
Last updated: N/A

Simplified superannuation reform - key points

These apply from 1 July 2007 unless otherwise stated.

• Super benefits received by people aged 60 and over will be tax free
• Reasonable Benefit Limits will be abolished
• Employer Eligible Termination Payments must be taken as cash
• Limits on concessional contributions (deductible contributions) will be simplified
• Limits on voluntary contributions (undeducted contributions) - apply from 10 May 2006
• Extension of rules to cover self-employed people
• Greater flexibility as to how and when to draw down super - no more compulsory cashing of super - applying from 10 May 2006
• Super benefits received before age 60 will generally be taxed the same way they are now with streamlined rules
• From 20 September 2007, halving the current pension taper rate to $1.50

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