20th May 2013

What are the changes to my superannuation entitlements? Will the changes to the Super Laws effect me? How will the changes to the superannuation Rules effect me? Will I be better off with the changes to the Super Laws? Will I be worse off with the proposed changes to the Superannuation contribution Scheme? Will my employer contribute less to by super retirement scheme? Will my employer contribute more to my Super? Can I ‘top-up’ and contribute more to my Superannuation fund over and above my employers contribution? Is there a cap on my superannuation contributions? All of these questions are answered in a simple and easy to read summary. Changes to the Superannuation rules for dummies. Read more….


Owning your own home and Superannuation are still the two best investment plans in town, with all of their Tax free or reduced tax concessions. You don’t need to be a financial wizard, guru or adviser to know these simple statements of fact, and you don’t need to pay exorbitant fees and charges to achieve financial success and security. You only have to look at some of the penniless migrants who came to Australia and are now in the worlds SuperRich-Frank Lowy of Westfields. Harry Triguboff of Meriton.

v    Any Capital Gains on the sale of your home and residence is totally Tax free. There are hundred of stories of people who have purchased modest homes in suburbs which have suddenly become the flavour of the month and are now worth a princely fortune.

v    Don’t be frightened about the proposed changes to Superannuation ,the tax concessions are still extremely generous, and hardly make a ripple in most peoples superannuation portfolio plan, except the SuperRich contributors, whose treatment although  not quite as generous as previously, still remain ‘very nice thank you’.


The Australian Superannuation Scheme is the back bone to the success of the Australian Economy and has enabled Australia to prosper, whilst other countries around the Word have been gripped by financial implosion.


Superannuation is here to stay and is preferable to the aged pension and is based on the Government ‘user pay principle’.


The Australian Government wants the Superannuation Scheme to succeed. The Government wants every Australian to be self supporting and have their own sense of integrity, independence, value and worth, and not be humiliated and reliant on the hand to mouth welfare scheme.


It is fair to say that the SuperRich have been feathering their nests and taking every advantage of the Superannuation Scheme up to this point of time, but and it is now time to reign in those unfair investment avenues. Some of the SuperRich are so wealthy that they could not spend all of their money in 10 lifetimes.


The Government says the proposed reforms are aiming to improve the fairness of superannuation tax concessions as Australians are living longer and the superannuation system needs to be fair and more evenly spread and it needs to be sustainable.


Yes, the SuperRich should carry their fair share of the Tax burden .


The following is a summary of the proposed Government superannuation reforms which we have endeavoured to make very simple and easy to read and absorb.


Proposed Changes summary

1.   Change to tax exemption for ‘PENSION INVESTMENT’ earnings.




5.   Super for workers over the age of 70.

6.   Changes to increase the Government Low Income Superannuation Contribution.

7.   Changes to lost superannuation.

8.   Changes to facilitate people finding their lost super contributions.

9.   Establishment of Council of Superannuation Custodians.

10. Small business super clearing house.

11. Data and e-commerce standard


1. Change to tax exemption for pension investment earnings.


v    Currently investment earnings within superannuation pension funds are tax-free, regardless of how the Superannuation Fund has earned.

v    This is in contrast to earnings in the accumulation phase which are taxed at 15%.


From 1 July 2014, earnings within superannuation pensions are proposed to be tax-free up to $100,000 a year for each individual.  Earnings above $100,000 will be taxed at the  concessional rate of up to 15% .




Super Fund earns: $5,000 No impact – no tax. Earnings less than $100,000. 
Super Fund earns: $50,000 No impact – no tax. Earnings less than $100,000. 
Super Fund earns: $100,000 No impact – no tax. First $100,000 tax free.  
Super Fund earns: $150,000 First $100,000 tax free. Remaining $50,000 taxed at 15% – tax $7,500. 
Super Fund earns: $250,000 First $100,000 tax free. Remaining $150,000 taxed at 15% – tax $22,500. 



2. Change to concessional contributions cap.

v    Currently a $25,000 annual cap applies to concessional contributions, regardless of your age.

v    In calculating the Concessional Cap, all contributions include the Superannuation Guarantee salary sacrifice and personal tax-deductible contributions are aggregated.

v    From 1 July 2013, proposed new caps will apply therefore enabling some people greater opportunity to boost their superannuation.



1 July 2013 – 30 June 2014
Age Proposed concessional contributions cap 
Up to 60 $25,000
60+ $35,000


1 July 2014 onwards 
Age Proposed concessional contributions cap 
Up to 50 $25,000
50+ $35,000




3. Fairer  treatment of excess concessional contributions.

v    Contributions in excess of the annual cap of $25,000 are effectively taxed at the top marginal tax rate (46.5%) rather than the normal rate of 15%.

v    This is very unfortunate and severe penalty.

v    Under the proposed change, individuals will be able to withdraw any excess concessional contributions and the excess contributions will be taxed at the individual’s marginal tax rate.


4. Increased Superannuation Guarantee

From 1 July 2013, Superannuation Guarantee starts to increase from 9% up to 12%:


Tax year Superannuation Guarantee  rate (%)
2012/13 9.00%
2013/14 9.25%
2014/15 9.50%
2015/16 10.00%
2016/17 10.50%
2017/18 11.00%
2018/19 11.50%
2019/20 12.00%


5.Super if you are over 70 and working

v    From 1 July 2013, the upper age limit for paying super for an employee will be removed.

v    This means people over 70 may now be eligible to get super from their employer.



 6.Low Income Superannuation Contribution

v    The low income super contribution is a Government super payment of up to $500 per financial year to help lower income earners save for their retirement.

v    You may be eligible if your adjusted taxable income does not exceed $37,000.

v    The payment is 15% of the concessional contributions you or your employer makes from 1 July 2012.

v    The maximum payment you can receive for a financial year is $500 and the minimum is $20.


7.Lost superannuation.

Hard to believe but there is approximately $18.1 billion in lost superannuation accounts.



8. Finding lost super

v    SuperSeeker is a free and secure online tool to help keep track of your super, and has recently been improved.

v    You can use SuperSeeker to check your super accounts, find lost super, find super held on your behalf by the ATO and can transfer super using an online form.

v    To use SuperSeeker you need to register online at www.ato.gov.au/superseeker.



 9. Establishment of Council of Superannuation Custodians.

v    The Government proposes to establish a Council to ensure that any future changes are consistent with an agreed Charter of Superannuation Adequacy and Sustainability.

v    The Charter will be developed against the principles of certainty, adequacy, fairness and sustainability.

v     It will also clearly outline the core objectives, values and principles of the Australian superannuation system.

v    The Council will be charged with assessing future policy against the Charter and providing a report to be tabled in Parliament.


10.Small business super clearing house

v    A free online service to help small businesses with 19 or fewer employees meet their super guarantee obligations.

v    The service lets you pay your superannuation contributions in one transaction to a single location.

v    You can find out more at www.humanservices.gov.au.


11.Data and e-commerce standard

v    A data and e-commerce standard is being introduced to make processing super payments easier.

v    The new standard means employers will be able to send super contributions to funds in one standard electronic format.

v    Employers must comply with these standards – penalties will apply to the employer if they do not.

v    If you have 20 or more employees you need to start using the new standard from 1 July 2014.

v    If you have 19 or fewer employees you have a further 12 months.