Cavendish outlines likely consequences of Budget's super changes

federal-budget/SMSFs/government/

30 April 2012
| By Staff |
image
image
expand image

Specialist self-managed superannuation funds company Cavendish Superannuation has sought to explain the consequences of the Government's expected Budget move to increase the superannuation contributions tax on wealthier Australians.

Cavendish Superannuation head of education David Busoli said the expected Federal Budget announcements would include a doubling of the contributions tax on concessional contributions to 30 per cent for individuals who earn at least $300,000 in income from 1 July 2012. 

He said the definition of income would be broad and include taxable income, concessional superannuation contributions (both superannuation guarantee charge contributions and salary sacrifice contributions), adjusted fringe benefits, total net investment losses, some foreign income, tax-free pensions and benefits less child support. 

Busoli said where the $300,000 limit has been breached because of the level of concessional contributions, the 30 per cent contribution tax rate would only be applied to the amount of the contribution which caused the breach.

He said that, on such a basis, an individual with $280,000 in taxable income who had made a $25,000 concessional contribution would pay the 30 per cent contribution tax on $5,000.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 6 days ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS