The current Government are talking about changes to Superannuation…
Every Government in power considers changes to Super as there are some juicy tax concessions which if altered would provide the Treasury with substantial tax revenue; this flows into budget forecasts, the Government looks better and is in a better position to win another term of Government…
The public like the budget to be in surplus though no one wants to be the one to pay extra tax to assist this – funny that!
Grandfathering Provisions
Funds in your Super before any changes will most likely benefit from the existing rules, this creates and incentive to get more funds in under the current rules. The term used for these funds is that they are grandfathered and protected under the existing rules of the system.
You may want to consider your circumstances and if you can afford it get some funds into your Super.
Some of the proposed changes include:
- Top income earners would pay an extra 10¢ of tax in every dollar on their superannuation contributions and be left up to $3000 a year worse off under a proposal being examined by the Turnbull government.
- A person on an annual wage of $30,000 would get an extra $450 in their super each year, while those on the median $57,980 wage would be $145 a year better off.
- The government is looking at a proposal to tax super contributions at marginal rates minus 20 percentage points. It echoes a recommendation made by the Henry tax review and more recent modelling by consulting firm Deloitte.
Those on wages under $37,000, who pay 15¢ for every dollar put into their super accounts, would no longer pay any tax on those contributions.