Federal Budget 2016 – Superannuation | KPMG | AU

Federal Budget 2016 – Superannuation

Budget 2016 – Superannuation

The most significant changes to the tax setting of superannuation since 2007 form part of the 2016 Budget.

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The changes to the tax settings for contributions are all in the direction of improving the equity outcomes from the distribution of tax concessions.


Key insights

  • The retention of tax concessions for contributions for low income earners, and catch-up contributions for members with broken work patterns, including many women, are particularly welcome.
  • Prior to these changes, the distribution of tax concessions for superannuation earnings was heavily skewed to members with large superannuation balances, particularly those in pension phase. The announced changes go a significant way to improve the equity of these concessions.
  • The draw down phase of superannuation remains the big unfinished element of Australia's system, which is otherwise recognised as a leading system round the world.

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