The Labor Government’s first federal budget in May this year didn't reveal too many big changes for superannuation. Australia’s overall taxation system is to be reviewed, but importantly the government has assured us that superannuation benefits paid to those over the age of 60 will remain tax free.

Here are a few other outcomes:

More income tax cuts started on 1 July 2008. Many of us now receive an extra $10 to $20 a week in our pay packet – are you using yours wisely? Check out some smart strategies to boost your retirement savings.

Government co-contribution rules will be tightened on 1 July 2009, with salary sacrifice superannuation contributions to be counted as income when working out if you qualify. Currently, people earning over $60,342 can salary sacrifice into superannuation to lower their assessable income and improve their entitlement to a co-contribution. This opportunity will only be available until 30 June 2009.

Same sex couples – differential treatment for same sex couples and their children will progressively be removed from a wide range of Commonwealth laws including superannuation and taxation. The reforms are being phased in starting from 2008/2009, and will provide new rights for same sex couples and their children.

Please remember that some of these announcements are only proposals at this stage and are yet to be passed by Parliament. Naturally, as your super fund, we'll keep you updated of any changes that affect you.

Please visit http://www.budget.gov.au/ for more information.

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