News

The Government is still currently reviewing proposed legislation and regulation changes to Australia's superannuation industry. Here is a brief update on changes which have been announced or coming up in the near future.

Cooper Review:

The final report from the super review contained 177 recommendations, across 10 recommendation packages and 10 super policy principles. Out of all of these recommendations the Government has responded to a number of the major ones.

In particular the Government has indicated that:

• From 1 July 2013 super funds can offer MySuper products
• Tax file numbers (TFNs) can be used as the primary member identifier from 1 July 2011.
• Employers will be required to provide more information to employees about superannuation actually paid. This will be done through electronic notifications if regular super payments cease.

The Government is planned to respond to the remaining review recommendations by the end of 2010.

Henry Review:

The Henry Review report contained 138 recommendations, seven relating to superannuation. The government released its initial response on 2 May 2010.

The major changes that they are implementing include:

• An increase to the superannuation guarantee rate from 9% to 12% (over a 9 year period) -  Along with this the Government will raise the superannuation guarantee age limit from 70 to 75.
• Introduction of a new low income earners government contribution of up to $500 for individuals on adjusted table income of up to $37,000 from 1 July 2012.
• The concessional contributions cap be increased to $50,000 per annum for workers aged 50 and over and who have total super balances below $500,000.

For more information regarding these changes, view the ATOs fact sheets located at www.futuretax.gov.au/pages/FairerSuperannuation.aspx.