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.
Recommended for you
The winners have been announced for the 2025 Super Fund of the Year Awards, held in Melbourne on 26 November by Money Management's sister brand Super Review.
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
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.
