Superannuation

Your super is one of the most important investments you can make in your own future. The choices you make today can determine your lifestyle when you retire.

Super is one of the most tax-effective investments available so it's worth a closer look. Also, there have been many changes to super rules recently so it's important for all Australians to be aware of the new rules to maximise opportunities that may be available.

Hot Topic: Tax File Numbers

If a super fund does not have your Tax file Number (TFN) on record, taxable contributions above $1000 will incur 45% Contributions tax. In addition, funds will not be able to receive your personal after-tax contributions without a TFN, and some will not accept any type of contribution.

- Provide BT with your TFN now.

Hot Topic: 2007 changes

In the 2006 Federal Budget the Government announced significant changes designed to simplify and streamline superannuation. Some changes took effect in 2006-07, but most took effect from 1 July 2007. 'The new super rules for super members' flyer (PDF 194KB) gives you a snapshot of the key changes. They included:

No tax after age 60 from a taxed superannation fund, regardless of whether you take your benefit as a lump sum or convert it to an income stream
Reasonable Benefit Limits (RBLs) abolished so there’s no longer any penalties for accumulating large amounts is super
You can stay in super as long as you like, there’s no longer a requirement to cash out of super after 65 if you’re no longer working (this took effect 10 May 2006)
Tax File Numbers (TFNs) are of greater importance. If a super fund does not have your TFN, they will not accept your personal after-tax contributions and may even reject other contributions too. And, where taxable contributions are accepted, these may incur tax up to 45%. More information on TFNs.
New contribution caps are in place. If investing after-tax monies, you are now limited to $150,000pa (or $450,00 brought forward over 3 years if you’re under age 65). If you’re investing pre-tax monies (i.e: salary sacrifice and employer contributions), only the first $50,000 will be eligible for the 15% Contributions tax. (If you’re over age 50, the limit is $100,000 until 30 June 2012, when it will revert to $50,000 for everyone)
Self-employed people have enhanced opportunities. A full tax deduction is available for self-employed contributions (but only the first $50,000 of deductible contributions is eligible for the 15% Contribution tax, or up to $100,000 until 30 June 2012 if you’re over age 50). And, self-employed people may now be eligible for the Government co-contribution scheme. More information on co-contributions.
Rollovers now require proof of identity.

Some changes occurred to income streams as well, visit our Retirement pages for more information.