Budget 09: Super Changes

Changes announced in the Budget included:

• The annual cap for concessional superannuation contributions has been halved from $50,000 to $25,000, and the transitional concessional cap has been reduced to $50,000 per year from its former limit of $100,000
• The superannuation co-contribution scheme will be reduced to a rate of 100 per cent for contributed amounts for the 2009/10, 2010/11 and 2011/12 years, increasing to 125 per cent for the 2012/13 and 2013/14 years and returning to 150 per cent for the 2014/15 year
• The increase in the age pension qualification age to 67 years from 2017.

'It was disappointing to see these changes to super, however, it is pleasing to see the reduction of the co-contribution is only temporary and back to the 150 per cent in five years time,' said Hugh Elvy, Head of Financial Planning and Superannuation at the Institute.

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