Deferral of the proposal to allow anyone with a balance of less than $500,000 in superannuation entitlements and who is over 50 years of age to have a concessional contribution cap of $50,000 instead of $25,000. This has been deferred until 1 July 2014.
Persons with income greater than $300,000 will be required to pay 30% on contributions rather than the concessional tax rate of 15%. If a person on more than $300,000 was to exceed their concessional cap and be subject to the Excess Contributions Tax, the 30% tax rate would not apply to the excess contributions as these contributions will continue to attract an effective rate of 46.5% on the concessional contributions.
Not in the Budget but previously announced is the fact that the concessional cap for all individuals is now capped at $25,000 with no indexation until 1 July 2014.
