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Key 2010 Federal Budget announcements

Treasurer Wayne Swan said that he wanted to deliver a strategy that will see the budget return to surplus in three years time, three years ahead of schedule. In light of this, the Government proposed a number of changes in the 2010/2011 Federal Budget. Here is a short summary of some changes proposed for super and tax:

  • Gradual increase in the SG rate from 9% to 12%, beginning 1 July 2013.
  • Compulsory SG for employees aged 70 or over, beginning 1 July 2013.
  • Matching rate for super co-contributions at 100% will continue. Basically $1 for every $1 personal post-tax contribution made, to a maximum of $1,000.
  • From 1 July 2012, the Federal Government will make an annual contribution up to $500 for individuals on adjusted taxable incomes of up to $37,000.
  • Permanent extension of the higher pre-tax contributions cap to $50,000, for those aged over 50 years and over with super balances below $500,000 commencing 1 July 2012.
  • A cut in income tax rates for those within the $80,001-$180,000 salary range from 38% to 37% and the 15% tax bracket extended to $37,000.

These proposals have not yet been legislated by the Government. We are committed to keeping you up-to-date on any changes in super that may have an impact on you or your employees. Look out for our new employer e-newsletter in July.

 More news can be found in Super news

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