Money

Issue No. 32 - December/January

SMEs get more bang for super buck

by Ian Snook

As part of the implementation of the new superannuation system announced in the May 2006 Federal Budget, Treasurer, Peter Costello recently revealed the final details of the Howard Government plan to restructure the national retirement savings system.

The detail shows that further benefits will be available to small businesses.

The changes made have been based heavily on recommendations provided by William Buck, who saw a need to address the limitations of the proposed legislation.

The May Budget proposed that benefits withdrawn from superannuation would no longer be taxed, however a cap on the amount of undeducted contributions - generally $150,000 per year - that can be made into superannuation has been introduced.

Undeducted contributions are personal contributions made from an individual's after tax income. Small business people will be able to contribute $1 million from the sale of their businesses, in addition to the amount that other people can...

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