THE SUPERANNUATION CHANGES FROM 1 JULY 2017 - The Fair and Sustainable Superannuation Act 2016
DFWA is seeking urgent advice to clarify some issues with the Fair and Sustainable Superannuation Act 2016 and how the provisions are being applied to a typical unfunded untaxed DRFDB (Defined Benefits [DB]) superannuation. This superannuation income stream is fully taxed in the recipient’s hand, albeit with a 10% discount if the recipient is over 60 years of age. Yet the Commonwealth Superannuation Corporation (CSC) is including the gross amount in the calculations toward the $1.6m Transfer Balance Cap (TBC). To any reasonable person, this seems blatantly unfair when compared to a person with a funded DB scheme; their gross and net are the same.
The intent of the Act is to impose a $1.6 million Cap on the amount of capital that can be transferred to the tax-free earnings retirement phase of superannuation – details of the Act are here. http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5760
The impact of CSC’s decision is that:
We request that Government determine the following and advise:
The Act is to be implemented on 1 July 2017 and there are still many questions in regard to its application, therefore a prompt response has been requested to enable DFRDB superannuants to take action to adjust their superannuation if required.
The new ADF Superannuation arrangements commenced on 1 July 2016. DFWA was instrumental in lobbying for a change to the Governments original proposal for a two tiered Government contribution arrangement, to an increased contribution rate of 16.4% of salary plus all but “expense related” allowances for all ADF members regardless of their operational status. DFWA also worked to ensure ADF Cover was at least equivalent to the provisions in the MSBS scheme.
ADF MEMBERS / MILITARY SUPERANNUANTS
.. do you have any concerns or interest about Comsuper and the whole messy way military superannuation - your superannuation - is managed ? You are invited to join a Facebook Group to learn more about a matter that affects us all. Check out and join COMSUPER - MILITARY ENTITLEMENTS https://www.facebook.com/groups/1098180903529690/
Links to past related documents are shown below:
286 Update - January February 2014
ADF Super Position Paper 19Feb15DFWA Position Paper on the proposed Military Superannuation Scheme, ADF Super
ADSO MEDIA STATEMENT 24 MAY 2016It's Time to Stump up for our Service Men and Women, and Veterans
Vol 46 No 2Camaraderie Vol 46 No 2 July 2015