1 July 2012 Superannuation Reminder
There are several key numbers that potentially change on 1st July 2012 impacting superannuation.
Well reported is the cap of $25,000 for concessional contributions, regardless of age.
Contributions in excess of $25,000 for the 2012/13 year will result in excess contributions tax.
Some readers may recall that there was to be a higher cap for persons aged 50 and over, with less than $500,000 in superannuation, but that proposal did not become legislation. It might in the future.
The other key number is that the minimum annual pension payments are 75% of the old minimums. There is some comfort that this reduction is the same as the 2011/12 financial year, so minimum pension payments should not change.
Failing to pay out the minimum, results in the earnings of the fund becoming taxable (rather than tax free).