Govt’s high income super legislation finally in draft
The legislation to underpin the Government's removal of superannuation tax concessions to upper income earners (those earning over $300,000) which was a core part of last year's Budget has finally been released for public consultation.
With the Prime Minister, Julia Gillard, having said everything was back on the table in terms of helping address the Budget black hole, the Treasury this week released the exposure draft for Tax Laws Amendment (Sustaining the Superannuation Contribution Concession) Bill 2013 and the accompanying explanatory memorandum.
Amid all the debate around the Government's approach to superannuation and discussion of the manner in which existing arrangements unduly favour upper income earners, the Federal Opposition had pointed out that the Government had failed to introduce the legislation which effectively reduces access to super tax concessions for those earning over $300,000 a year.
Treasury's synopsis of the purpose of the bill stated that "very high income earners receive a higher superannuation tax concession than average income earners. The changes contained in the Bill will effectively ensure that very high income earners will receive a superannuation concession on their contributions more closely in line with the concession received by average income earners. This will improve the fairness of the taxation of the superannuation system".
There has been recent speculation that in its attempts to address the Budget bottom line this year, the Government may actually move to lower the $300,000 threshold to $250,000 a year.
The 8 May closing date for public submissions on the legislation suggest that the Government will be hard-pressed to move it through the Parliament during the five sitting weeks before the Federal Election.
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