The Australian government has published a plan for the tax exemption on pension earnings in superannuation accounts to be capped at $100,000, with any amounts above that threshold to be taxed at 15%.
Currently a 15% tax applies to earnings from assets in a pension fund during the accumulation phase, this being the period before the person becomes eligible for a pension. The change would affect the fund after the person becomes eligible for a pension, which would now be taxable at 15% on earnings above AUD 100,000.
From 1 July 2013 the cap on concessional superannuation contributions is being raised to AUD 35,000 for people aged 60 and over. This increased cap will apply to people aged 50 and over from July 2014.
