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Government confirms its position on super

The re-election of the Australian Labor Party means that the Government will now confirm its position on various initiatives which were part of the ALP’s election and policy platform before the election.

Highlighted below of some of the changes relating to superannuation:

The Government has confirmed its position on the Henry Tax Review as follows:

  • Increasing the superannuation guarantee to 12 per cent. The Government will also extend the superannuation guarantee to cover older workers up to age 75.
  • Providing a new concession worth up to $500 for low income earners.
  • Doubling the contributions cap to$50,000 from 2012-13 for people aged over 50 with super balances under $500,000.

The Government has also announced that from 1 July 2011, collectibles and personal use assets owned by self managed superannuation funds (SMSFs) must be stored according to new rules to prevent them from giving rise to a personal benefit. Existing assets that cannot meet these rules will have to be sold within five years. The government recognises that collectibles like works of art can be a legitimate asset class, providing investment opportunities for self managed retirees as well as important commercial benefits to Australia’s artists.

However, it acknowledges concerns over such assets attracting superannuation’s concessional tax treatment while being available for “personal benefit” (e.g. being displayed in the home of a superannuation fund member). There are currently no enforceable guidelines about how these assets can be held to prevent them from giving rise to such personal benefits.

Want more information? For more information about contributing to your superannuation fund, please contact Bates Cosgrave Financial Services on 02 9957 4033 or email us at enquiry@batescosgrave.com.au.


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