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Date of article: 7 May 2010
Last updated: 11 May 2010

Australia's Future Tax System (Henry) Review Report

The Review report put forward a proposal for comprehensive tax reform. The Government's response to the recommendations was less than comprehensive. Ths Government announced a small number of recommendations that will be implemented or rejected outright, but remaining silent on most of the 138 recommendations.

In the retirement and superannuation space, although not all explicitly part of the Review recommendations, the Government announced areas of reform include:

  • increasing the superannuation guarantee rate from 9 per cent to 12 per cent, introduced progressively over 6 years from 2013
  • lifting the eligible age for superannuation guarantee from age 70 to 75 from 1 July 2013
  • a superannuation contribution up to $500 for low income earners from 1 July 2012
  • allowing workers age over 50 with superannuation balance below $500,000 concessional contribution of up to $50,000 per year from 1 July 2012 (the date of expiration of the current transisitonal measures).

The Government release the Henry Report on 2 May 2010.