[The big question to be answered in 2015 is whether low wage earners will have to continue underwriting the tax concessions on super enjoyed by high-income earners.] Currently superannuation is taxed in a way that hugely favours the rich, but a major overhaul of the taxation system this year could change that. Each year, the federal government forgoes $45 billion in revenue because it levies special tax rates on super contributions and payouts. With the government poised to release its whitepaper on tax reform, it seems Australia’s superannuation system is on the cusp of a tax overhaul that could have material effects on future returns and benefits of super members. The big question to be answered in 2015 is whether low wage earners will have to continue underwriting the tax concessions on super enjoyed by high-income earners. This looms as a big challenge for a government that lost many friends last year after it tightened eligibility for the aged pension and slashed many other benefits of less affluent retirees. How Mr Hockey tackles the eligibility requirements for tax concessions on super could seal the government’s fate at the next election... thenewdaily.au/money/2015/01/12/joe-hockey-tax-concessions-rich/
Posted on: Tue, 13 Jan 2015 06:22:26 +0000
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