At last the uncertainty around superannuation is over – Treasure Wayne Swan announced today what changes the Labour government intend to make to superannuation. Summary of key changes announced:At last the uncertainty around superannuation is over – Treasure Wayne Swan announced today what changes the Labour government intend to make to superannuation.

The key changes announced are:

1. From 1 July 2014, earnings on assets supporting pensions will be tax free up to $100,000 a year for each individual. Earnings above $100,000 will be taxed at 15%. Assuming a rate of return of 5%, this will only affect individuals with more than $2m in superannuation pension assets;

2. For people over 60, concessional contribution caps will be increased from $25,000 to $35,000 from 1 July 2013. This concession is to be extended to those over 50 from 1 July 2014 and everyone else from 1 July 2018;

3. Currently, concessional contributions in excess of the annual cap are taxed at the top marginal tax rate of 46.5 per cent rather than the normal rate of 15 per cent, penalising individuals with income below the top marginal tax rate. The government plans to tax excess concessional contributions at the individual’s marginal tax rate, plus an interest charge.

Note that these changes are subject to being legislated. Wayne Swan made it clear that they won’t be legislated before the 14 September 2013 election.