Superannuation and Retirement Planning Commentators have suggested that all retirees will be better off under the new

Running Head : Superannuation and Retirement

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Introduction

An amendment was made on the taxation law and was identified as the 2007 simplified superannuation Act . The Act was to take effect from 2007 , the 1st of July . Through out the Act as stated by (Annette 2006 , changes were made on the modes of taxation with the aim of improving the lives of people affected by the provisions of the Act . A royal Assent was granted to the Act on the 15th of March 2007 . The

Act entails the required amendments that would help in the process of the implementation of the reforms . The Act also made amendments to enable a simplified process of reclaiming unclaimed and lost funds on superannuation , as well as references updating laws that are contained in different Acts which are in connection with the superannuation law According to (Gnckenzie , 2007 , the first of July 2007 and the 20th of September 2007 are very important dates for seniors

Benefits of the New Super To The Seniors

On the 1st of July 2007 , the government introduced the new super rules , which stated that once a person is retired and above sixty , all their income received by means of superannuation would be free from any tax . Such money is free from taxation no matter the amount . As Betamann (2006 ) stated , It was therefore an encouraging factor that someone saves a lot in the super so as to get a big share of tax free income upon retirement . This rule applied whether a person decided to take their income as a lump sum or as a complying pension . A strategy for people who were nearly retiring to get money tax free , what Gnckenzie (2007 ) suggested was to get many of their assets in the super as they could

Australia was recommended for being generous with the way it treated the superannuation taxation method once a person was above the age of sixty . The government of Australia receives huge royalties on tax on the annual boom , and as a result it tries to redistribute the income to its community . One of the ways through which it does this as Clare (2005 ) posited , is avoiding tax on super . This ensures that the seniors in the country are able to access their income and pension either tax free or on a very low tax basis

The 20th of September changed the conditions which could be applied for one to qualify to get their aged pension . Far more generous , the assets would measure the upper limits to ensure most seniors who were to get part pension would receive part pensions that were much larger , or a full part pension . It would also enable seniors to be able to make claims on assets which they were not able to do previously . Centrelink under the new regime would make things simpler as (Betamann , 2006 observed

From the new super rules , the death benefit tax is reduced if it gets paid through the superannuation...