Superannuation

From 1 July 2009, the concessional contributions cap will be reduced from $50,000pa to $25,000pa.  This cap will be indexed. 

The transitional cap for people over 50 years old will reduce from $100,000 to $50,000, with a further reduction to $25,000 at 1 July 2012 (or equivalent indexed amount at that time).

Non-concessional Contribution Threshold

This remains at $150,000 (scheduled to increase to $165,000 at 1 July 2009).  It will be indexed in line with the concessional contributions cap and will remain at six times that cap.

Minimum Pension Withdrawal Reduction
The account based minimum pension withdrawal requirements will continue to be halved for 2009/10.  This is an extension of the initiative announced earlier this calendar year.  This measure assists self-funded retirees by not forcing a sale of assets at reduced market values and allowing the capital base to be invested for the future.

Co-Contribution Temporary Reduction
The co-contribution will be temporarily reduced.  Non-concessional contributions of up to $1,000 are currently matched by the Government with a co-contribution of $1,500 for people earning less than $30,342.  The co-contribution will be phased out up to an income level of $60,342.

The co-contribution will reduce to $1,000 in 2009/10, 2010/11 and 2011/12 and increase to $1,250 in 2012/13 and 2013/14.  It is scheduled to return to the full $1,500 in 2014/15 and future years.

Lost Superannuation Accounts
Superannuation accounts with less than $200 and accounts that have been inactive for more than five years with insufficient information to determine the owner will be paid to unclaimed monies from 1 July 2010.

Trans-Tasman Retirement Savings Portability
This proposed scheme will enable the transfer between certain Australian superannuation funds to KiwiSaver accounts.  A memorandum of understanding is in place between the Australian and New Zealand Governments and details will be forthcoming.