Government quietly extends its super net
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.
AUTHOR
Staff Writer
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
