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Budget 2015: Superannuation

Dying able to access their super earlier

Date of effect: From 1 July 2015

After a few horrible cases where terminally ill people could not access their superannuation, the Government is changing the rules to provide some respite.

Currently, patients must have two medical practitioners (including a specialist) certify that they are likely to die within 1 year to gain unrestricted tax free access to their superannuation balance. The Government will change this period to 2 years.

Social Security for superannuants

Date of effect: From 1 January 2016

A larger proportion of a superannuant’s defined benefit income will be taken into account when applying the relevant social security income test, capping the proportion of income that can be excluded at 10%.

A defined benefit income stream is a pension paid from a public sector or other corporate defined benefit superannuation fund where the pension paid generally reflects years of service and the final salary of the beneficiary. Under current arrangements, some defined benefit superannuants are able to have a large proportion of their super income excluded from the pension income test.

Recipients of Veterans’ Affairs pensions and/or defined benefit income streams paid by military superannuation funds are exempt from this measure.

SOURCE: Knowledge Shop

To discuss how this may impact your circumstances please contact PPT on (03) 5331 3711.

DISCLAIMER: The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

 

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