Government quietly extends its super net

taxation/government-and-regulation/federal-budget/federal-government/

16 May 2013
| By Staff |
image
image
expand image

The Federal Government has used a technical change within the Federal Budget to widen the number of Australian upper income earners likely to be hit by its move to remove superannuation tax concessions to those earning over $300,000.

The move was first announced in its 2012 Budget. The draft legislation was put up for discussion a few weeks ago, but with little or no fanfare the Government has changed the technical basis upon which it will measure whether people are actually earning over $300,000.

It said in Tuesday night's Budget that it would now be using "a similar definition of income for the measure to that used for calculating whether an individual is liable to pay the Medicare levy surcharge".

In doing so, it has widened its revenue net and the number of people who will be affected by the move, because the $300,000 figure will be calculated in a way which brings into play factors such as fringe benefits tax (FBT) and net income losses.

Deloitte partner Russell Mason said the change, while seemingly minor, was likely to impact a considerably greater number of people than the Government's original 2012 Budget measure.

He said that along with bringing reportable FBT into calculation, the change would also likely impact those with exposure to negative gearing.

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....

4 weeks 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 6 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