• Increased low rate cap on super lump sum benefits: the low rate cap for lump sum payments has increased from $150,000 (2009/10) to $160,000 (2010/11).

This is the limit set on the amount of the taxable component of a super lump sum benefit that you can receive at a lower (or nil) tax rate, and applies if you have reached preservation age (currently 55) but are below 60.

• Maximum earnings base for SG: the maximum earnings base of an employee for which an employer is obliged to make Superannuation Guarantee (SG) contributions has increased from $40,170 per quarter (2009/10) to $42,220 per quarter (2010/11).

• Individual income tax rates: the rates for 2010/11 have changed. Take a look at the ATO’s page here.

And there’s more to come

There were a number of other initiatives announced by the Government in response to the Henry Tax Review that have not yet been legislated, such as gradually increasing the SG rate from 9 to 12%, introducing a $500 contributions tax rebate for low-income earners, maintaining the concessional contributions caps at $50,000 per year from 1 July 2012 for over 50s with low super balances and raising the SG age limit from 70 to 75.

The Government has also announced it will continue its drawdown relief for account –based pensions in the form of a 50% reduction in the minimum payment amounts for the 2010/11 financial year.

It’s important to note that these proposed changes will all require legislation to be drafted and passed by Parliament prior to becoming law.

More information on these proposals will be published on the CareSuper website if and when these reforms become law.