Budget 2009/2010 snapshot for super savers and retirees

Superannuation

• Concessional contribution cap cut to $25,000 from July 2009
• Government co-contribution cut to $1000 from July 2009
• ‘Lost’ account balances of less than $200 to be transferred to the ATO

Superannuation pensions

• Gross tax-free superannuation income NOT be counted for the Commonwealth Seniors Health Card
• Pension drawdown relief extended for 2009/2010 year

Age Pension changes

• $32.49 weekly increase in single Age Pension, and $10.14 for couples (combined)
• Harsher income test for Age Pensioners
• Age Pension age set to increase to 67 from 2023
• Pension Bonus Scheme to close 20 September 2009
• Introduction of Work Bonus of up to $125 to encourage workforce participation
• Age Pensioners in aged care: $22.40 of the $32.49 per week increase in Age Pension will flow to the residential aged care provider, and $10.09 will flow to the pensioner.

Other related changes

• Single self-funded retirees who receive Commonwealth Seniors Health Card to get extra $129 a year
• Tax cuts announced during 2008/2009 Budget to be implemented
• Some concession for self-funded retirees in aged care

Related articles:

1. Budget flags radical changes to Age Pension
2. Age Pension: September 2009 rates and thresholds now available
3. Budget changes hit hard for super savers
4. THE SOAPBOX: Fair go for retirees and super savers
5. Federal Budget May 2010: A quick summary