Minister for Revenue and Assistant Treasurer Peter Dutton today called on Labor to swiftly pass the Simplified Superannuation Bills through the Senate.
“These bills implement the most significant reforms to the taxation of superannuation in Australia’s history. They are part of the Government’s plan to maintain Australia’s prosperity into the future,” Mr Dutton said.
“The reforms will sweep away the current raft of complex tax arrangements that apply to superannuation, improve incentives to save, increase retirement incomes, and strengthen incentives for older Australians to stay in the workforce.”
Under the reforms, from 1 July 2007:
- Superannuation benefits paid from a taxed fund will be tax free for people aged 60 and over;
- Age based limits will be replaced with streamlined contribution rules and reasonable benefit limits (RBLs) will be abolished;
- The highly successful Government co-contribution scheme will be extended to the self employed; and
- Individuals will have greater flexibility as to how and when to draw down on their superannuation in retirement.
As a result of these reforms, in the vast majority of cases, the 90 per cent of Australians in taxed schemes will have the tax treatment of their superannuation benefit covered in one paragraph of law if they access their superannuation after age 60.
“These changes should be passed swiftly to provide certainty to all Australians who are planning their retirement and to the superannuation industry,” Mr Dutton said.
“The Simplified Superannuation Bills are a real investment by the Government in the standard of living of Australians in retirement and the country’s future economic prosperity.”