Law Central’s newsletter offers a good summary of the good, the bad and the ugly of recent proposed changes to the superannuation system.
The good is the increase in concessional caps. From 1 July 2013 taxpayers over 60 will have their concessional tax increased to $35,000, and this is extended to taxpayers over 50 from 1 July 2014.
The bad (at least for the wealthier among us) is that earnings on superannuation income streams over $100,000 will now be taxed at 15% rather than being tax free.
The ugly is that excess concessional contributions will now be taxed the same way as non-concessional contributions.
We are reminded that none of this is yet law.
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