With the new financial year under way we are reminding clients what changes have been made to superannuation and allocated pensions.

In the last sitting week of parliament for the 2013 financial year, several key pieces of legislation were passed that have an immediate impact on superannuation entitlements and allocated pensions benefits.

This financial year employees will receive an increase in their superannuation guarantee contributions from 9 per cent to 9.25 per cent.

The superannuation guarantee rate will rise incrementally to 12 per cent by July 1, 2019. Employees over 70 will also be entitled to superannuation guarantee payments with the removal of the upper age limit for those payments.

Those turning 60 or older in the new financial year will have access to a higher concessional superannuation contribution cap of $35,000 for the financial year.

This cap is not means-tested and applies to all employer contributions, salary sacrifice contributions and personal deductible contributions. The previous limit was $25,000.

For those with an allocated pension, the government has reinstated the higher minimum drawing requirements.

Your minimum drawing requirement is based on your age and pension account balance at July 1 each year.

The proposed changes to ban the off-market or "in specie" transfers of listed securities were removed from the legislation so individuals can continue to transfer their shares into their superannuation funds without the requirement to sell and buy on market.

Sourced from The Australian written by Andrew Heaven