南京夜网,南京桑拿网,南京桑拿论坛

Powered by Shoes28!

29 April
Comments Off on Super changes create $800m saving

Super changes create $800m saving

Federal budget at a glanceTreasurer Wayne Swan’s budget speech Full budget 2013 coverage
南京夜网

The government expects to save more than $800 million from the recently announced changes to the taxation of superannuation over the next four financial years, but has largely quarantined the $1.5 trillion sector from further changes in the federal budget.

The budget papers show that savings from April’s politically fraught changes to taxation of super will be $821 million over the four years to 2016-17, compared with estimates of $900 million.

The budget does not include any changes to negative gearing, capital gains tax, first-home buyers accounts, or reduced taxes on savings accounts.

Groups including accounting body CPA Australia have argued for a cut on taxes on deposit accounts to encourage national savings and reduce the country’s reliance on superannuation.

But the budget does forecast revenue of $130 million over the 2016 and 2017 financial years from the transfer of lost super accounts to the Tax Office.

The budget shows a technical amendment to the Low Income Superannuation Contribution – which provides up to $500 for people earning less than $37,000 to compensate them for tax paid on super – will cost $15 million over five years. But the Coalition has vowed to repeal the payment due to Labor linking it to the mining tax.

The Superannuation Complaints Tribunal will receive $2.6 million over four years, to be offset by an increase in the levy on Australian Prudential Regulation Authority regulated super funds.

There is a one-off payment of $3 million to establish a Tax Studies Institute at the Australian National University and $5.4 million set aside over four years for financial literacy measures.

Following Treasury warnings on the ballooning cost of super tax concessions, Treasurer Wayne Swan and Financial Services Minister Bill Shorten in April announced a ”modest” package of super change, one Mr Shorten has described as getting the balance right.

These were imposing a 15 per cent tax on the earnings above $100,000 from retirement accounts, and making people earning more than $300,000 a year pay 30 per cent contributions tax instead of the 15 per cent paid by everyone else.

From July 1 this year, anyone aged 60 and over will have an increased concessional contribution cap of $35,000 from $25,000. From July 2014, the higher cap will apply to anyone aged 50 and over.

Further changes, recently put into draft legislation, are taxing excess concessional contributions at a person’s marginal tax rate, plus an interest charge, following complaints by the super industry and self-managed investors of exorbitant penalties for exceeding contribution rates.

Other personal finance changes include reducing payments for new parents, a freeze on the indexation of various family payments, and reducing the amount of time a family can be temporarily overseas and still receive payments from three years to one.

The government added that despite the 0.5 per cent increase in the Medicare levy to help pay for DisabilityCare, ”Australians will be paying $19.7 billion less in tax in 2014-15 than they otherwise would have under the tax scales in place when the Coalition left office”.

 
Comments are closed.