26 Apr 07 Simplified Super – transitional integrity measure announcedIn a press release issued on 24 April 2007, the Minister for Revenue and Assistant Treasurer, Peter Dutton, announced a transitional integrity measure to support the Simplified Superannuation reforms.
Contributions made by a person on behalf of another person, but which are not Government co-contributions or contributions made on behalf of a spouse, child or employee (for example, those made by a friend) are taxed in the hands of a superannuation fund, generally at 15%. However such contributions are not included in any cap during the transitional period of 10 May 2006 to 30 June 2007.
The Treasurer’s Press Release No 131 of 7 December 2006 indicated that the Government would act to address any avoidance activities that are undertaken in Simplified Superannuation, with the date of effect backdated to 7 December 2006. This issue, if not addressed, could have resulted in people circumventing the contribution caps by giving large amounts of money to another person to contribute to a superannuation fund on their behalf prior to 1 July 2007.
The amendment will ensure these contributions made between 7 December 2006 and 30 June 2007 are included in the $1 million cap on non-concessional contributions.
For a copy of the Minister's press release, No 2007/037, 24 April 2007, go here