Better Super - Building your super
What is Better Super?
Better Super is the name given to the superannuation regime which was introduced by the Australian Federal Government on 1 July 2007.
Better super was originally called Simpler Super and is often still referred to in that way. The aim of Better Super is to simplify superannuation savings and taxation and provide more flexibility in retirement.
Some of the key points of the Better Super changes include:
- Tax free superannuation income and lump sums after age 60 for members of taxed super funds (for example the New South Wales SSS, SASS and Police schemes).
- A limit of $25,000 on the amount of concessionally taxed superannuation contributions that can be made to an individual’s superannuation each year. Concessional contributions are typically your employer’s contributions and any salary sacrifice contributions you make. A transitional limit of $50,000 each year applies for individuals over 50 until 30 June 2012.
- A limit of $150,000 per year (or $450,000 in a three year period) for non concessional contributions. Non-concessional contributions are generally personal after tax contributions.
The Better Super changes provide some important opportunities particularly for those close to retirement. They also introduce some restrictions that may affect how you plan to build wealth for a secure retirement.
For more information on what you can do to make the most of your superannuation in the Better Super environment, see Fact File 2 - Spring Clean Your Super (PDF, 562 KB) or visit the Australian Taxation Office website.