Will high income earners exit super for property?
The Federal Treasurer, Scott Morrison, has rejected suggestions that targeting the superannuation tax concessions enjoyed by upper income earners will necessarily prompt them to shift their investment focus to the property market.
Seeking to explain the Government's Budget changes in a series of interviews, Morrison acknowledged, however, that upper income earners would undoubtedly move to reduce their exposure to the higher tax regime.
The Treasurer said that those impacted by the superannuation tax changes could switch their money back into accumulation or they could invest it wherever they chose.
However, Morrison suggested that high income earners affected by the Budget changes might choose to invest their money in some of the tax-advantaged business opportunities announced in the Budget rather than necessarily in property.
Discussing the status of the superannuation changes, Morrison said, "Now it's your money so you can go and put it where you want. You can transfer it back into what's called the accumulation account in superannuation, where you pay 15 per cent tax on the earnings or you can go and spend it anywhere else you like — I mean it's your money".
"So no one's taking the money off them, it's theirs, they've earned it, good for them and I'm thrilled that they've done so well for themselves. But that doesn't mean once you've got over $1.6 million that the taxpayer's going to give you a tax free saving."
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
