Super tax changes to affect higher income earners most
Higher income earners are likely to be most affected by proposed superannuation tax incentive changes in the Budget, according to Centuria Life.
The mooted super tax changes in the upcoming Budget could lead to reduced retirement savings.
This uncertainty means advisers and those planning for retirement are looking for tax effective structures to supplement super, Centuria's general manager, Neil Rogan said.
"It makes sense for people to be looking out for ways to supplement their super as tax effectively as they can. And we're seeing a real resurgence in interest in investment bonds as a result," he said.
"Those on higher incomes may want to consider their options and savings strategies to supplement their super before any changes come into effect."
Centuria said the likely areas in super to be tackled in the budget would be:
- Taxing the contributions of higher earners at a higher rate;
- Making the discount for capital gains tax for super funds less generous; and
- Reducing the annual limit on superannuation contributions and/or changing the transition to retirement rules as they relate to concessional tax rates.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
