Superannuation Tax Breaks Will Be Cut In May
Superannuation tax breaks will be cut as part of plans to bring the budget back to surplus, The Australian newspaper reports.
The enormous tax concessions are set to be scaled back after a key budget committee ruled that retirement savings should be subjected to wider cutbacks, the paper said.
It calculated that $30 billion worth of tax breaks on super could be at risk, as the superannuation industry lobbies to be quarantined.
High income earners who pay only 15 per cent tax on their super contributions, well below a 45 per cent tax on income, stand to be the biggest losers.
Labor promised at the 2010 election to bring the budget back to surplus in the 2012/13 financial year.
Treasurer Wayne Swan is scheduled to deliver his fifth budget on May 8, with this one likely to be his most stringent.
But The Australian says senior Labor figures are worried about offending swinging voters as the ALP tries to make retirement savings a central political theme.
The federal government legislated to have employer super contributions raised from 9 per cent to 12 per cent by 2020, marking the biggest reform since the Keating government introduced compulsory super in 1992.
To find out how this may affect you as an Australian expat, whether you are looking at returning to Australia soon or would just like to know as part of your wealth building strategy, please contact the expat superannuation specialist, Atlas Wealth Management