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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.