Superannuation for Journal of Financial Economic - myassignmenthelp

Question: Discuss about theSuperannuation for Journal of Financial Economic Policy. Answer: Dear Client, The aim of this letter is to inform you about the recent changes that have been made in the superannuation regulations in the latest federal budget. It is important to be aware of the changes so the changes that affects the superannuation account is provided in this letter. The recent changes in the superannuation regulations have been made more flexible. The flexibility in the regulation is likely to provide certain advantages to the self-employed and income earners of less than $40000. The new regulation has made changes in the limit on the contribution and the balance cap[1]. The new regulation provide that in case of eligible tax payer that have earnings up to $37000 will receive an additional superannuation contribution from government. This is known as low-income super tax offset and this amount should be equal to 15% of the super contribution or $500. The new regulation have made certain changes that affects the high-income earners. The new regulation has made reduction in both the after and before tax contribution limit in case of high-income earners. The high-income earners will have to pay extra tax if the income and the contribution combined exceeds the threshold limit of $250000. That means concessional contribution cap has been removed in t he new regulation for all the contributors[2]. This threshold limit previously was $300000. In the recent change, the 10% rule have been removed thus making it easier to get tax deduction for personal super contribution. The new regulation have also reduced the non-concessional contribution from $180000 to $100000 per annum. The recent changes that affects the superannuation account has been discussed above. However, if there is any further clarification required then please contact us and it will be a pleasure to provide further assistance in this regard. Thanking You Reference Brown, Christine Ann, Kevin Davis, and David Mayes. "Regulatory change in Australia and New Zealand following the global financial crisis."Journal of Financial Economic Policy7, no. 1 (2015): 8-28. Donald, Scott, Hazel Bateman, Ross Buckley, Kevin Liu, and Rob Nicholls. "Too Connected to Fail: The Regulation of Systemic Risk within Australia's Superannuation System."Journal of Financial Regulation2, no. 1 (2015): 56-78.