WA Super News

2013 Federal Budget

15/05/2013

The 2013 Federal Budget was the sixth Budget delivered by the current Treasurer and incumbent Government. Delivered exactly four months out from the next Federal election, it may prove to be their “swan song”.

The announcements made on 14 May 2013 were largely non-surprising with virtually all major announcements from a wealth perspective, having been rumoured and confirmed in the days and weeks leading up to this night.

One potential positive from this year’s Budget - and seemingly inconsistent with previous years- is that there were no further significant changes announced to Australia’s superannuation system. Of course, that may be because they were previously announced on 5 April this year and there was nothing more to be done.

The fact that this Budget contained many small measures that are broad in their application means it is likely that most people will feel an impact at some point.

However, it’s important to remember that virtually all measures announced will still need legislation to be introduced, and will have to pass through Parliament. And there is no doubt that Parliament will be very busy in its remaining time before the September election.

This also highlights why it is important to seek financial advice, personalised to your circumstances and goals, to help provide you with comfort and confidence in decisions about your financial future.

Proposed Superannuation changes:

  • No extension of draw-down relief for income streams - Proposed from 1 July 2013
  • Higher tax on concessional contributions for high income earners - Effective–Current financial year
  • Changes to tax free treatment of superannuation in pension phase - Proposed from 1 July 2014
  • Changes to concessional contribution caps - Proposed from 1 July 2013
  • Changes to excess concessional contributions - Applies to excess concessional contributions made from 1 July 2013

You can find a full explanation of these proposed changes here.

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