Government Begins to Spring Clean & Taxation of Pension Earnings Gets the Boot

The new Treasurer has commenced the spring clean of previously announced tax and super changes.  Almost one hundred announced but not yet enacted policy changes have been identified.  The Government will review these changes by 1 December 2013 and either implement or file them for good in the circular filing cabinet.

The Treasurer has announced that the Government will not be proceeding with the taxation of pension earnings.  This proposal was announced on 5 April 2013 by the previous Government and was to take effect from 1 July 2014.

Consequently the current taxation treatment applying to super funds which are in pension phase will continue after 1 July 2014.

The Treasurer has also stated that the Government will not be proceeding with the following non-superannuation changes:
•    the $2,000 self-education expenses cap; and
•    revised fringe benefits tax on cars.