Important information about the temporary flood levy
The federal government has introduced a Temporary Flood and
Cyclone Reconstruction Levy (flood levy) of up to 1% for the
2011/12 financial year only. The flood levy will only apply to
those with a taxable income of more than $50,000, unless you are
exempt from paying the levy.
How does the flood levy affect my
superannuation?
The flood levy will only affect your superannuation if you meet
the following criteria:
- You receive a lump sum or pension payment with a taxable
component in the 2011/12 financial year, AND
- You are aged under 60, AND
- You earn more than $50,000 a year.
The flood levy will not apply to payments that are tax free -
for example, lump sum or pension payments you receive if you are 60
or over, or any lump sum death benefits that are paid to a
beneficiary who is your dependant for tax purposes.
The amount of tax Intrust Super is required to withhold from
superannuation benefits you receive in the 2011/12 financial year
will include the flood levy.
If you are currently receiving an income stream payment and/or
making lump sum withdrawals from your Intrust Super account, and
you've been notified by the Australian Tax Office (ATO) that you
are exempt from paying the flood levy, please send us your Flood
Levy Exemption Declaration Form. You can download this from the
ATO's website at www.ato.gov.au.
If you're thinking about withdrawing a lump sum benefit in the
2011/12 financial year, we recommend that you talk to a
professional tax adviser.
If you would like more information, please call us on 132
467.
You can also read more Intrust Super news here.