Increased tax on Super contributions

Increased tax on Super contributions

During its last term in office, the Federal Labor party introduced a superannuation charge for people earning more than $300,000 annually, taxing these people’s contributions at 30 per cent, while everyone else pays 15 per cent on contributions.

In April 2015 the Federal Opposition (Labor’s Bill Shorten) proposed to lower the threshold to double the superannuation tax on contributions to 30% for many Australians to raise more than $5 billion over a decade.

It would initially affect around 110,000 Australians and could come into effect as early as 2017, if it receives parliamentary support.

Of course, once the principle is established, and Super is no longer “sacred”, it is easily foreseeable that further subsequent “tinkering” with the rates could affect more retirees.

I predict that the Australian Government will continue its attempts to increase its grab of our super.

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Author: Rod Genders

https://www.genders.com.au/

Rod Genders is a senior Australian lawyer specialising in Wills and Estate Planning, Probate and Estate Administration, Trusts and Guardianship and Inheritance Claims and Contested Estates in South Australia. His boutique specialist law firm, which was founded on 1848, is one of the oldest and most respected in Australia. Rod is an international author and speaker. Rod is the 3rd generation of Genders in the law and has been practising specialised law since the mid 80’s. He has acted as counsel or consultant to in excess of 50 other firms around Australia. Rod holds the SA state record for the highest ever personal injury award of damages, and has been involved in several of the largest personal injury claims in Australian legal history. For over 10 years he served on the Council of the Law Society of South Australia and is a senior member of its Succession Law Committee. Rod was a founding committee member of the South Australian branch of the London-based Society of Trusts and Estate Practitioners (STEP) for 8 years and was the founding Chair of the international STEP Digital Assets Special Interest Group. For over 25 years Rod has chaired a private committee enquiring into the affairs of protected persons. He is a member of the Law Council of Australia, and a member of its Succession and Elder Law Committee.