With the rush to get money into superannuation this financial year, there is only two weeks until we move into the brave new world of a simpler superannuation system.

The basics of the new superannuation system will be that:

You can make 'tax effective' contributions to superannuation of up to $50,000 a year.  These contributions include your 9% compulsory employer contributions and any salary sacrifice contributions.

You can put in additional contributions of your own money (personal contributions) of up to $150,000 a year or $450,000, which will bring forward three years of contributions into one.

The investment earnings in a superannuation account will be taxed at a maximum of 15% - lower than investment earnings in a company structure, or for most people if the investments were held in their own name.

After the age of 60 you can withdraw superannuation tax free - either as a lump sum or as an ongoing income stream which has minimum withdrawals of 4% up to the age of 65 and 5% betweeen 65 and 75.  There is no maximum withdrawal.

Of course, this is just the rough outline.  Make sure you get further details about your situation before acting on anything.  However, this will be a simpler superannuation system, and is worth knowing about to get the maximum 'bang' for your buck.

Cheers

Scott Francis