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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