2010 Federal Budget
Last Updated : 13 May 2010
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The 2010 Federal Budget was handed down on 11 May 2010 and few changes were announced with respect to superannuation. Some were a confirmation of previous announcements made in the Government’s response to the Henry Review on 2 May 2010.

 

The changes are summarised below:

 

Increase in Super Guarantee (SG)

 

  • SG will increase from the current 9% of salary to 12%. This will occur gradually starting from
    1 July 2013 and reaching 12% on 1 July 2019:

 

Year

Rate (%)

2013-14

9.25

2014-15

9.5

2015-16

10

2016-17

10.5

2017-18

11

2018-19

11.5

2019-20

12

 

  • There will be an increase in the age limit to which employers must pay SG for their employees. This will increase from age 70 to age 75.

 

Contributions Tax Rebate for lower income earners

 

  • A rebate of up to $500 will be paid to the super accounts of individuals whose Adjusted Taxable Income (ATI) is less than $37,000. This will commence from 2012/13.
  • The rebate is an effective refund of contributions tax paid on SG contributions made for individuals whose marginal tax rate is less than 30%.  It addresses the inequity of 15% contributions tax for those who pay 15% or less in personal income tax.

 

Extension of the Concessional contribution Cap for those aged 50 or more 

 

  • The current $50,000 per annum concessional contribution cap for those aged 50 or more is due to expire on 30 June 2012, after which time the lower cap of $25,000 (currently for those under age 50) will apply. For those with less than $500,000 in superannuation, the $50,000 cap will continue permanently from 1 July 2012.

 

Government Co-contribution

 

  • The previously announced re-introduction of the $1,500 maximum co-contribution rate (over 5 years with the $1,500 rate to apply from 2014/15) was revoked.
  • The maximum co-contribution of $1,000 on non-concessional contributions of up to $1,000 will remain permanently.
  • The income thresholds for the calculation of the co-contribution will not be indexed for the next two years, freezing the lower threshold at the current $31,920 and the upper threshold at $61,920.  

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This website, and documents linked to it, provides information of a general nature. It has been prepared without taking into account your particular needs, circumstances and objectives. You should assess your own financial situation and read our combined Product Disclosure Statement and Financial Services Guide before making an investment decision. The Trustee of AGEST (Australian Government Employees Superannuation Trust) is AGEST Super Pty Ltd, ABN 44 007 390 392, SPIN AGE0101AU and AFSL 233707, RSE Licence L0000383, RSE Registration R1001556.