Federal Budget and superannuation

Each May, the federal government releases the Federal Budget. The federal government reveals how it is going to spend taxpayer’s money over the following 12 months, and whether it will have any money left over. The federal government also uses the Federal Budget to make significant policy announcements about superannuation.

The 2016 Federal Budget (also known as the 2016/2017 Budget) was announced by Treasurer Scott Morrison on Tuesday, 3 May 2016. For a summary of the superannuation changes announced in the 2016 Federal Budget see SuperGuide article 2016 Federal Budget summary: Superannuation shock for Australians.

In addition to articles about super and the 2016 Federal Budget, in this section you can also find summaries and supporting articles on previous years’ Federal Budgets:

Set out below are all SuperGuide articles explaining Federal Budget and superannuation.

Super update: Catch-up concessional contributions from July 2018

Any Australian considering making super contributions from July 2017 needs to be mindful that the annual concessional (before-tax) contributions cap will be much lower than previous financial years. From 1 July 2017 (subject to legislation), the annual concessional contributions cap will drop to … [Read more...]

Superannuation death benefits and the $1.6 million transfer balance cap

We have received many questions from readers about how the new $1.6 million transfer balance cap will operate when a fund member dies, especially if the fund member has arranged for his or her spouse to receive a superannuation death benefit pension, including a reversionary pension. This article … [Read more...]

2016 Federal Budget update: Superannuation changes likely to become law

SUPER ALERT! On 15 September 2016, the federal government announced significant adjustments to proposed new superannuation policies. The change of heart on some super policies was in response to the Treasurer consulting with Liberal MPs, and interest groups (and presumably also in response to the … [Read more...]

Concessional contributions caps to be slashed from July 2017

As part of the 2016 Federal Budget, the Coalition government announced it intends to scrap the over-50s concessional (before-tax) contributions cap of $35,000 and replace it with a $25,000 cap, and reduce the general concessional contributions cap (for under-50s) to $25,000, from its current … [Read more...]

Super contributions: What’s going on with the over-50s concessional cap?

SUPER ALERT! In the May 2016 Federal Budget, Treasurer Scott Morrison announced the end of the over-50s concessional (before-tax) contributions cap, taking effect from 1 July 2017. For the 2016/2017 year, the over-50s cap continues to apply. Continue reading for more information on the over-50s … [Read more...]

Burden for retirees: Monitoring $1.6 million transfer balance cap

Note: Moving towards July 2017, most retirees will need to monitor two lifetime superannuation amounts – their transfer balance cap, and their transfer balance account. The proposed policy will apply to both existing and new super pension accounts from 1 July 2017, which effectively means the policy … [Read more...]

Minimum pension payments for 2016/2017 year

Note: This article explains the superannuation minimum pension payment factors for the 2016/2017 year. The article also lists the minimum pension factors for the 2015/2016, 2014/2015, 2013/2014, 2012/2013, 2011/2012 and 2010/2011 years. Alternatively, if you are looking for the latest Age Pension … [Read more...]

SMSF pension: How do I calculate my minimum pension payment?

Q: I run our SMSF. I wish to retire at 58. I am a little confused about the 4% minimum rule for pensions. Do I have to withdraw 4% of my total accumulation SMSF fund, or do I move some of the assets into a pension fund and then draw 4% a year?A: You ask a very popular question. The minimum … [Read more...]

Accessing super: What is my preservation age?

Note: This article explains at what age you can access your superannuation benefits. If you are seeking information on when you can claim the Age Pension, see SuperGuide article Age Pension age increasing to 67 years (not 70 years).We receive hundreds of questions each year asking when you can … [Read more...]

The short story on super contributions limits (2016/2017 year)

You can make two types of superannuation contributions – concessional (before-tax) contributions and non-concessional (after-tax) contributions – and each type of contribution has a separate limit. Concessional contributions Before-tax contributions, such as compulsory Superannuation Guarantee … [Read more...]

Latest retirement deal! Lose Age Pension, receive Seniors Health Card

The stricter Age Pension assets test has now become law, although the changes won’t take effect until January 2017. The federal government predicts that more than 300,000 Australians will be worse off under the harsher assets test starting from 1 January 2017, with nearly 100,000 Australians losing … [Read more...]

Temporary concessional contributions cap for over-50s, ends 30 June 2017

In July 2013, the federal government introduced a temporary concessional contributions cap of $35,000 for over-60s, which was then expanded to 50-somethings from July 2014. The over-50s cap of $35,000 will no longer apply beyond the 2016/2017 year (subject to legislation).A concessional … [Read more...]