BUDGET WILL BOOST SUPER

Changes to superannuation in the May Federal Budget will go a long way toward making it a more attractive vehicle for the retirement savings of Tasmanian teachers, according to Tasmania's largest industry superannuation fund.
Tasplan General Manager, Neil Cassidy, believes that once they are implemented, the changes will increase the flow of funds into superannuation, providing fund managers with larger amounts to invest.
It is projected that superannuation assets will exceed $2,500 billion by 2015, representing over half of all domestic savings.

Key changes announced in the Budget which will generate greater interest in superannuation include:-
.No taxation of benefits on retirement after age 60
.Abolition of Reasonable Benefit Limits (RBL's)
.Pension payments to be tax free from age 60
.Self-employed able to claim a full deduction on contributions and also claim a co-contribution
.Age Pension Asset Test to be eased by September 2007
Cassidy cautioned TCEEA members (particularly those who may be planning their retirement now) to note that the changes won't take effect until July 2007. He warned that it might be a bit early to begin unravelling existing retirement plans.

To help members understand the effect on their superannuation, Tasplan has prepared a summary of the Budget changes which can be obtained from the Tasplan website www.tasplan.com.au or by contacting Megan on 1300 881 367 or by email to info@taplan.com.au. Ask for the 'Federal Budget Summary'.

Cassidy also reminded TCEEA members who are members of Tasplan that they have access to free financial planning advice about their superannuation as part of their Tasplan membership. Simply call 1300 138 848 to make an appointment to talk to a financial planner.
TCEEA members can direct any other enquiries about their Tasplan accounts to 1800 005 166.

© 2005 Tasmanian Catholic Education Employees' Association
379 Elizabeth Street, North Hobart
Tel. (03) 6234 9970 Fax: (03) 6234 9505
Last Modified: Tuesday, 05-Sep-2006 17:28:03 EST
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