The Government has released for public consultation exposure draft legislation to define the primary objective of superannuation and to implement some of the superannuation changes announced in the 2016-17 Budget including:
- tax deductions for personal superannuation contributions,
- introducing a Low Income Superannuation Tax Offset (LISTO); and
- harmonising contribution rules for those aged 65-74.
The Superannuation (Objective) Bill 2016 states that the primary objective of the superannuation system is “to provide income in retirement to substitute or supplement the age pension”.
The Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 and the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulation 2016 will:
- allow people (under age 75) to claim a tax deduction for personal superannuation contributions, irrespective of their employment arrangements. This will benefit those who are partially self-employed, contractors and those people whose employers do not offer salary sacrifice arrangements;
- remove the restrictions that currently prevent some people aged between 65 and 74 from making voluntary contributions to their superannuation to make additional contributions; and
- Introduce the Low Income Superannuation Tax Offset (LISTO) which will ensure individuals do not pay more tax on their superannuation contributions than on their take-home pay.
