Super Update
Super proposals in 2008 Budget
The May 2008 Federal Budget contained a number of superannuation proposals, including those summarised below. The measures will not take effect until passed in Parliament.
Changes to same sex legislation
Legislation to remove differential treatment of same-sex couples and their children will be introduced in a number of areas including superannuation. The Bill is currently under review by Parliament. Once the necessary legislative and rule amendments are finalised we will advise you in the Latest News section of our website.
Access to tax free lump sum for a person with a terminal medical condition
As previously announced by the Government, the measure to make superannuation lump sum benefits tax free for people with a terminal medical condition has been backdated to 1 July 2007. Consideration is being given to the implications and applicability to MilitarySuper Benefits. Any changes to these MilitarySuper Benefits will be advised via our website.
Government review of the Australian Taxation system
The Government has announced a comprehensive review of the Australian Taxation system. This review is expected to be completed by the end of 2009 and will examine taxation of savings, investments and superannuation. MilitarySuper will monitor this review for any implications for the MilitarySuper Scheme and, where relevant to Members, advise any changes in future Annual Reports and on our website.
Family Law changes
The Government has introduced the Family Law Amendment Bill into Parliament, to amend the Family Law Act 1975 to:
- include opposite-sex and same-sex de facto couples
- offer these de facto couples access to the family law system for determination of their financial matters arising on relationship breakdown.
Full details on this proposal are not available at this time. Once the necessary legislative and rule amendments are finalised we will advise you via our publications and website.
TopTrust Deed
The MilitarySuper Trust Deed was updated during the year. The changes improve access to spouse benefits where a retirement pensioner commences a marital relationship after age 60. A copy of the Trust Deed is available on our website.
TopReview of Military Superannuation
In 2007, the then Government announced an independent review of military superannuation arrangements. The aim of the review was to assess the suitability of the existing arrangements in light of changes in the wider superannuation environment and the changing demographics of the Australian Defence Force (ADF). The review was conducted by an independent Review Team with support from civilian and military personnel in the Department of Defence (DoD) and involved consultation with key stakeholders.
The findings of this review were released for public consultation in late December 2007 on the DoD website www.defence.gov.au. Interested parties were invited to submit comments on the report and its recommendations, with the consultation period ending 31 March 2008. Further information regarding the review can be obtained at www.defence.gov.au/militarysuperreview.