Upper income earners are expected to lose a part of their superannuation tax concessions when the Treasurer, Scott Morrison, brings down the Federal Budget in Canberra tonight.
The Government has strongly signalled its intention to reduce the tax concessions available to high income earners, with the only question being the threshold at which the reduced tax concessionality will cut in, with speculation ranging between $180,000 and $250,000.
The Government has also signalled that it may direct a portion of the savings resulting from the reduced tax concessions towards assisting low income earners, amid continuing pressure from lobby groups for the retention of the Low Income Superannuation Contribution (LISC).
The Financial Services Council (FSC) and a number of other industry organisations have been strongly lobbying the Government not to reduce superannuation concessional contribution caps below the current $30,000.
The FSC has produced a case study suggesting any reduction of the concessional caps to $20,000 would have a net adverse impact on the Budget through greater demands on the Age Pension.
Money Management will have full coverage of the Budget tonight and its outcomes will be canvassed at the Future of Super Conference on 26 May http://www.superreview.com.au/events/future-superannuation
