2014 Federal Budget Update

Australian Catholic Superannuation and Retirement Fund

www.catholicsuper.com.au

On Tuesday 13 May the Federal Government handed down the 2014 budget. To help keep members of Australian Catholic Superannuation informed these slides outline the key announcements in relation to superannuation, pension and retirement planning.

The Budget contained the following key points:

• Superannuation Guarantee (SG) contributions paused at 9.5% for 3 years until 30 June 2018 .

The rate will reach 12% on 1 July 2022, three years later than currently legislated.

• Increase the Age Pension qualifying age to 70 years.

From 1 July 2025 the qualifying age will continue to increase from 67 to 70 years by 1 July 2035.

• From 1 September 2017 increases in a range of Government pensions will be linked to changes in the Consumer Price Index (CPI), rather than to the current method.

• From 20 September 2017 the Income Test deeming thresholds will be reset to $30,000 for singles and $50,000 for couples.

This may result in the Income Test applying at lower levels of assets.

• From 1 July 2017 the Income and Assets test thresholds will be frozen for 3 years .

Since these thresholds will gradually become lower than under current rules, this may result in more people exceeding the threshold resulting in a lower pension.

• From 1 January 2015 untaxed superannuation income will be included in the assessment of income to determine eligibility for the Commonwealth Seniors Health Card (CSHC).

Income from superannuation account-based pensions, currently excluded from the assessment, will be included. This is expected to apply only to new pensions from 1 January 2015.

• A range of changes were also made to benefits available to holders of the Commonwealth Seniors Health Card (CSHC).

Click here to visit our website to see a full summary of the Budget.

Please note that the Budget requires legislation to be passed by Parliament before becoming law, and therefore may be subject to change.

We hope that you find this information helpful. Should you have any questions in relation to the Federal Budget or any other matter, please contact our Call Centre on 1300 658 776.

The Australian Catholic Superannuation financial planning service is offered through an arrangement with Industry Fund Services Limited (AFSL 232514). For further details, or to obtain a copy of the Fund's Product Disclosure Statements, please contact us on 1300 658 776, or visit our website www.catholicsuper.com.au. You can also contact us by email at fundoffice@catholicsuper.com.au.

This information is for illustrative purposes only and does not take into account your particular goals, financial situation or needs.

SCS Super Pty Limited, 33 Burwood Rd, Burwood NSW 213 ABN 74 064 712 607, AFSL 230544, RSE L0002264 Trustee of Australian Catholic Superannuation & Retirement Fund, ABN 24 680 629 023, RSE R1055436