Proposed superannuation changes in 2015-16 Budget

The 2015 Budget put forward by the Federal Treasurer, Joe Hockey, surprisingly did not introduce changes to the taxation of superannuation. Minor policy changes announced were as follows:

Release of superannuation for those suffering a terminal illness

Effective date: 1 July 2015

Under existing policy arrangements, to qualify for a terminal illness payout you must have two medical practitioners, at least one must be a specialist, certify that the person is likely to pass away within 12 months. This has led to cases where the person has a terminal illness but is expected to live longer than 12 months and have been required to wait. The government will seek to legislate to increase the eligibility timeframe from 12 to 24 months.