Superannuation Guarantee increase stalled until 2025, LISC available 4 more years, CSHC index legislation passes
We rarely send out alerts between newsletters, but the pending repeal of the Mineral Resource Rent Tax (and other measures intended to be financed by the MRRT) is significant news in superannuation terms. The stumbling block for the MRRT repeal legislation was the Senate where the Palmer United Party (PUP) had the balance-of-power bargaining chips. The bill now needs to return to the lower house, and then receive royal assent.
PUP has secured an extension to the Low Income Super Contribution for a further four years, but at the expense of the Superannuation Guarantee increase. The Liberal government has negotiated a stalling of the 12% SG increase until 2025, four years later than promised before the federal election, and seven years later than stated by the current law. See articles below.
In separate news, the legislation to index the Commonwealth Seniors Health Card income tests has passed both houses and is awaiting royal assent.
Articles outlining these changes are set out below. I will revisit these issues in further detail, in our September 2014 newsletter.
From 1 July 2014, the Superannuation Guarantee rate increased to 9.5% (from the 9.25% that applies for the 2013/2014 year). Based on advanced legislation currently before parliament, the SG rate will remain at 9.5% for 7 years (see table in the article). Read more
The Coalition government is repealing the Low Income Super Contribution: due to parliamentary negotiations to secure passage of the repeal of the Mineral Resource Rent Tax, the government has extended the LISC for 4 more years. The Liberals originally hoped it would only be payable for the 2012/2013 year. Read more
Since we started SuperGuide nearly 6 years ago, I have highlighted the lack of indexation associated with the Commonwealth Seniors Health Card, which had the (probably intended) effect of fewer people each year being eligible for the CSHC. Read more
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