The simplified tax system simply gets more complicated everyday. There does not appear to be a definition of the word “simple” on the ATO website!
On 7 December 2006 the Simplified Superannuation Bill 2006 and Supporting Bills were introduced into the House of Representatives!
What does it all mean? Ask an accountant or a Registered Tax Agent! The Bill contains key taxation elements of a Simplified Superannuation.
According to the Taxation Institute [if there is any such thing as "layman's terms for any of this legislation], the key taxation elements are:
- make superannuation benefits paid from a taxed fund either as a lump sum or a pension tax free for people aged 60 and over;
- lower the tax paid on superannuation benefits paid from an untaxed fund for people aged 60 and over;
- abolish reasonable benefit limits (RBLs);
- allow employers to claim a full tax deduction for contributions to superannuation on behalf of employees under the age of 75;
- allow the self-employed to claim a full tax deduction for contributions to superannuation up to age 75;
- limit the level of contributions to superannuation receiving concessional tax treatment to $50,000 per person per financial year; and
- limit personal superannuation contributions from an individual’s post-tax income (known as non-concessional contributions) to $150,000 per financial year or $450,000 for a three year period.
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