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Budget 2011 - Impacts for superannuation
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In the 2011/12 Federal budget there are a number of announcements that may impact some ESSSuper members. The Treasurer has announced the following:
There are limits on the amount of contributions that can be contributed into a members accounts, and tax penalties exist for contributions that exceed these limits.
Fund members will have a once-only opportunity to withdraw from the superannuation system, excess concessional contributions of up to $10,000 made in the 2011-12 and later years. The Government will consult on the implementation of this measure. There is no relief for excess contributions in previous years.
Also note that the Budget has clarified that post 1 July 2012, the higher contribution caps for people with less than $500,000 in superannuation and over the age of 50, will be set at an amount that is $25,000 above the standard contribution cap for any given year.
Each year the salary levels at which Government Co-contributions may be payable is indexed upwards. However the Government has announced that there is a freeze for a further 12 months of the lower and upper co-contribution income thresholds. They will remain at $31,920 and $61,920 respectively until 30 June 2013 meaning less people will remain eligible for the benefit.
During the Global Financial Crisis the Government temporarily reduced the minimum by half the amount those with an Income Stream had to take as an income each financial year. This relief has now been in place for the last three years. The Government has announced that the minimum amount requirements will be increased to 3/4 of the previous level.
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Standard minimum payment amount
% per annum |
Reduced minimum up to 2010/11
% per annum |
Reduced minimum for 2011/12
% per annum |
| Under 65 |
4 % |
2 % |
3 % |
| 64-74 |
5 % |
2.5 % |
3.75 % |
| 75-79 |
6 % |
3 % |
4.5 % |
| 80-84 |
7 % |
3.5 % |
5.25 % |
| 85-89 |
9 % |
4.5 % |
6.75 % |
| 90-94 |
11 % |
5.5 % |
8.25 % |
| 95 or more |
14 % |
7 % |
10.5 % |
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