There were limited changes for SMSF in the 2014 -2015 Budget. A summary of what is relevant for SMSF in this budget is noted below:
No excess contribution tax for non-concessional contribution
From 1 July 2013, individual who makes excess non-concessional contribution now has an option to withdrawn the excess amount together with any earnings without paying for excess non-concessional contribution tax. However, these withdrawn will be taxed at the individual’s marginal tax rate. If the individual does not withdrawn the excess amounts, the excess non-concessional contributions will be subjected to the top marginal rate for the excess non-concessional contribution.
Increase in Pension Age
The pension age will be increased to 70 by year 2035, Joe Hockey announced in the 2014-2015 Federal Budgets. This means:
- Individual who born after 1965, their pension age would be 70.
- Individual who born before July 1952, their pension age would be 65.
- Individual who born after June 1952 but before January 1966, their pension page would be between 65 and 70.
For more detailed info relates to your pension age, please see the table below:
For more information regarding the current pension age in SMSF[gn_button link=”http://www.superannuationwarehouse.com.au/running-smsf/preservation-age/” color=”#2133de” size=”3″ style=”1″ dark=”0″ radius=”auto” class=”Primary” target=”blank”]Preservation Age[/gn_button]
and SMSF pensions, please see here: http://www.superannuationwarehouse.com.au/pensions/