2011 -12 Budget BriefingSuperannuation Refund of excess concessional contributions.

One off Max $10,000 concessional From July 1, 2011

Issues Doesn’t address previous concessional contributions Errors not picked up for years (ATO way behind) Fails to address impact on large non-concessional contributions

Minimum payment draw down relief extended in 2011/12. Extension of reduced amounts for 2011/12 at 75%, rather than 50% currently

available. Back to normal levels from 01/07/2012.

Issues Review with your adviser, we can easily adjust levels for you.

ExampleJackie, age 60 has an Account Based Pension to the value

of $400,000 and has elected to take the minimum pension

draw down.

Required draw down 2010/11 = $8,000 (50%)

2011/12 = $12,000 (75%)

2012/13 = $16,000 (Regular)

Concessional contributions cap Continuation of $50,000 concessional cap for those

over 50 from 2012, if their account is less than $500,000.

Issues How and when will the $500,000 be counted? Will pensions, withdrawals etc be added back? This has got “Stuff Up” written all over it! Those still working with balances close to $500,000

could consider various strategies to stay under the $500,000 level and therefore potentially extend their ability to heavily salary sacrifice.

Review with your adviser

Taxation Limitation of the ability of minors (children under

age 18) to access the low income tax offset (LITO) from 1 July 2011.

Tax rates unchanged however a temporary flood and reconstruction levy introduced from 1 July 2011 for individuals earning more than $50,000.

Car Fringe Benefits Tax – Current valuation factors using the statutory method will be replaced by a single valuation factor of 20% by 1 April 2014.

2011 Budget Briefing

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