Reforms to Australia’s super system have been announced in the recent budget that will be considered by Parliament after the Federal election in September 2013. The proposed reforms will affect many super fund members both pre and post retirement, and you may find yourself wondering how these changes will impact your own retirement plan.
One of the reforms is an additional 15% tax on superannuation contributions for those earning income of more than $300,000 pa. The new tax (referred to as the higher contributions tax, or HCT) is triggered if an individual’s income plus certain concessional contributions (ie their low tax contributions) exceeds $300,000.
If legislated, this reform will take effect from 1 July 2012, meaning you may need to review your annual super contributions prior to 30 June this year.
Below is a link to an article with a good explanation of how the HCT will work:
If you would like to speak to us about how this and other proposed super reforms will affect your financial situation, please get in touch via the Contact Us page.