Approximately 12 new tax and superannuation-related Bills affecting the Income Tax Assessment Act 1997 were assented to between 28 and 29 June 2013.
Most of the amendments apply to the financial year 2013-14 (starting from 1 July 2013), among others:
- The Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013 has increased the concessional contributions cap temporarily to $35,000 for the 2013-14 financial year for individuals aged 59 years and over, and to $35,000 for the 2014-15 financial year and later financial years for individuals aged 49 years and over.
- The Tax Laws Amendment (Fairer Taxation of Excess Concessional Contributions) Act 2013 has abolished the excess concessional contributions tax, and the excess concessional contributions are subsequently included in the taxpayer’s assessable income from 2013-14 and are subject to an interest charge. The individual is also entitled to a non-refundable offset equal to 15% of their excess concessional contributions.
- The Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill 2013 has amended the ITAA 1997 to facilitate the MySuper reforms by providing income tax relief to superannuation funds where there is a mandatory transfer of default members’ account balances to a MySuper product in another superannuation fund.
- The Tax Laws Amendment (2013 Measures No. 1) Bill 2013 has included a new deductible gift recipient (DGR) category for providers of ethics classes in government schools (as an alternative to religious instruction), which means that taxpayers who make a gift to those organisations are allowed to claim an income tax deduction for it.