By: Rosemary Johnston – Wednesday, May 01, 2013
The Federal Government announced last week that it is planning to change the taxation laws for concessional contributions to Superannuation for higher income earners.
Concession contributions contributions that would earn 45% tax at a personal rate and are now taxed at 15% in the super fund.
In comparison average earners would be taxed at 32.5% in their salary and only 15% in super.
Proposal is to tax these higher income earners contributions at 30% rather than 15% inside their superannuation.
Higher Income is $300,000+, potential number of people in Australia involved are 1.2%.
http://www.treasury.gov.au/ConsultationsandReviews/Submissions/2013/Sustaining-the-Superannuation-Contribution-Concession