Print this     

Date of article: 11 November 2013
Last updated: 11 November 2013

Proposed tax on superannuation pension earnings scrapped, backlog of unlegislated measures

The Treasurer on 6 November 2013 stated that it is dealing with a backlog of 92 announced but unlegislated tax and superannuation measures that the current Government inherited. The Treasurer stated that these announced but unlegislated measures have created significant operational uncertainty for businesses and consumers.

The Government will proceed with 18 initiatives, 3 initiatives to be significantly amended, 7 will not proceed, and the Government will consult on the remaining 64 measures with a view of not to proceeding with them.

Among the seven measures the Government will not proceed with these, those relating to superannuation are:

Tax on superannuation pensions

Tax on earning on superannuation assets supporting income stream will not proceed. The original measure announced in April 2013 and due to take effect from 1 July 2014 was to apply tax on earnings after the first $100,000 for each individual at a rate of 15%, with some transitional measures for capital gains.

This means that all income, including capital gains, from assets supporting current pension will be fully exempt from income tax, with no caps.

Establishment of Council of Superannuation Custodians

The Government will not proceed with the establishment of a Council of Superannuation Guardians or the Charter of Superannuation Adequacy and Sustainability.

Treasurer's Media release – 6 November 2013 Restoring integrity in the Australian tax system

Do you need help with your situation or if you wish to discuss the above, please contact us. Our contact details.