Super changes may cost more than they deliver
The Federal Government's efforts to reduce tax concessions to those with higher superannuation balances may end up costing more to implement than it actually produces in revenue, according to Deloitte national superannuation leader Russell Mason.
Commenting on the Federal Budget, Mason welcomed the fact that there had been no significant additional changes to superannuation announced in the Budget documents but, rather, a confirmation of previous announcements including the most recent one made early last month.
Those changes, confirmed in the Budget, increased the concessional contribution threshold from $25,000 to $35,000 from 1 July 2013 for individuals aged 60 and over, and from 1 July 2014 for individuals aged 50 and over.
Howevever Mason said he remained concerned regarding the announcement to introduce a 15 per cent tax on earnings in retirement over $100,000.
"While there is no argument regarding the equity of this tax, Deloitte's superannuation team is concerned that the administrative cost in putting systems in place to calculate an individual member's investment earnings could potentially exceed the revenue raised," he said.
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.
