Future Superannuation Guarantee (SG) Rate Increases

Effective date: 1 July 2014

The Government has proposed to amend the schedule for increasing the SG rate to 12%. The SG rate will rise to 9.5% from 1 July 2014 and will remain at this level until 30 June 2018. The rate of SG will then increase by 0.5% each year from 1 July 2018 until it reaches 12% in the 2022/23 financial year.

Refunding Excess Non-Concessional Contributions

Effective date: 1 July 2013

The Government has announced that superannuation members who exceed their non-concessional contribution cap will have the ability to withdraw the excess contribution plus any associated earnings without having excess contributions tax levied on the amount. The earnings will be taxed at the individual’s marginal tax rate. If however you choose to retain these within the fund, the contributions will continue to be taxed at the top marginal tax rate.