Superannuation Updates

• Tax Slash on Superannuation

'The Australian' ( http://www.theaustralian.news.com.au) report entitled "Slash tax on super: Minchin" dated 23 January 2006 said that Finance Minister Nick Minchin has flagged sweeping cuts to the tax on superannuation that would boost the nation's retirement savings by more than $3billion a year.

Michin argued that the removal of the tax -- one of three taxes the Government levies on superannuation savings -- represented a better long-term investment and safer economic path than handing back money through income tax cuts.

• Superannuation Co-Contributor Campaign

On 24 March 2005, the Government launched the "Superannuation Co-Contribution Scheme" campaignto raise awareness of the availability of a generous government scheme matching and boosting personal contributions made to superannuation.



Under the scheme eligible employees receive $1.50 contribution from the Government for every dollar contribution from the individual.

The aim of the scheme is to boost personal savings for retirement. The initial scheme matched dollar for dollar personal contributions, but the Government decided last Budget to increase the incentive even further by increasing the Government's contribution to $1.50 for every dollar.

Low and middle income employees who make a personal contribution to their super fund have the potential to qualify for a booster co-contribution of up to $1500 from the Government. Employees earning up to $28 000 total income and making personal contributions to superannuation will receive a co-contribution of $1.50 for every dollar put into super, to a maximum co-contribution of $1500. Above $28,000 total income, the maximum co-contribution a person can receive reduces by five cents for each dollar earned, before phasing out completely at $58 000 total income.

• Review of the Provision of Pensions in Small Superannuation Funds

On 5 August 2004 The Minister for Revenue and Assistant Treasurer announced the Review of the Provision of Pensions in Small Superannuation Funds. The key tasks of the review were to address the Government's concerns with the provision of defined benefit pensions in small superannuation funds, and to examine options for small superannuation funds to provide pensions to their members that address the Government's concerns.

• Superannuation Legislation Amendment Bill 2004

The Parliament of New South Wales' "Superannuation Legislation Amendment Bill 2004" is an Act to amend various public sector superannuation Acts with respect to police hurt on duty benefits, death benefits, deferral and payment of benefits as a result of Government initiatives, adjustment of employer reserves, payment of Commonwealth co-contributions into public sector superannuation schemes and dispute procedures; and for other purposes.