Date of article: 28 February 2007
Last updated: N/A

Simplified superannuation passes the final hurdle

The simplified Superannuation legislation passes the senate.

The legislation reforms Australian’s superannuation system which includes simplifying the current complex tax arrangements.

Key changes from 1 July 2007:

• Superannuation benefits paid from a taxed fund will be tax free for people aged 60 and over.
• Age based limited replaced with streamlined contribution rule.
• Reasonable benefit limits (RBLs) will be abolished.
• Self employed will be able to claim a full deduction for personal contributions to superannuation and Government co-contribution extended to self employed.
• Pension assets test taper rate halved to $1.50 per fortnight for every $1,000 of assets above the assets test free area.
• Increased flexibility as to how and when to draw down on superannuation in retirement.