Source: Herald Sun April 05, 2013
The Government has announced they will raid Australia’s superannuation accounts to plug its revenue hole, with earnings over $100,000 to be taxed under a plan unveiled today.
Treasury estimates around 16,000 Australians will be affected by the measure in 2014-15 which represents 0.4 per cent of Australia’s projected 4.1 million retirees in that year.
Super reforms to hit top earners
Superannuation Minister Bill Shorten and Treasurer Wayne Swan this morning revealed Labor would cap the exemption for earnings on superannuation assets supporting income streams at $100,000 with a concessional tax rate of 15 per cent to apply after that.
Tony Abbott immediately hit out at the planned reforms describing them as “another broken promise” that would result in less money in the pockets of Australians.
Assuming an annual rate of return of 5 per cent, the changes – set to take effect from July 1 next year – would affect individuals with around $2 million of savings in superannuation.
“We want to make it better, we want to make it fairer and we want to make it stronger,” Mr Swan said of the superannuation system.
The measures – which will also hit politicians – will bring in around $900 million in savings for the federal budget over the forward estimates.
Mr Swan said there was “something wrong” with the system that everyday working Australians weren’t getting the best deal from superannuation.
People aged 50 and over will also get a boost to the tax free additional contributions they can make from $25,000 to $35,000.