Better super

The changes will make super even more attractive as an investment - but you will need to understand them to ensure that you get the best benefit from the new laws.

From 6 April 2007

• It will no longer be possible to split (after-tax) contributions (or Government co-contributions) with your spouse.
  
• However, any personal contributions received on or before 5 April 2007 can be split, and there are no changes to the splitting rules surrounding taxed contributions (employer contributions and salary sacrificed contributions).

From 10 May 2007

• People are no longer forced to withdraw their super once they reach age 65 and stop working; benefits can remain within the superannuation system indefinitely. More information ...
  
• A limit ($150,000 pa) has been introduced on making your own voluntary (after-tax) contributions.

From 1 July 2007

• All super benefits will be tax-free for people aged over 60 in a taxed super fund.
  
• Reasonable Benefit Limits (RBLs) abolished. More information ...
• Death benefits paid to dependants will be tax free.
• Self-employed will be able to claim a full deduction for contributions made into super until age 75, and are also eligible for the Government Co-contribution scheme for the first time.
• New contribution limits restrict the amount of before and after-tax contibutions that can be paid into super each year at a concessional tax rate of 15%. Contributions above the limits will be taxed at 46.5%. More information ...
• Tax will be applied at 46.5% (currently 15%) to voluntary contributions  in excess of $1,000 where a Tax File Number has not been provided. The $1,000 threshold will not apply to accounts opened on or after 1 July 2007.

From 20 September 2007

• Aged Pension Assets Test taper rate will be halved.
• The 50% Assets Test exemption will be removed for new complying income streams.