Labor’s superannuation tax policy

Posted on April 29, 2015 by ATB Chartered Accountants

The Australian Labor Party has announced that if elected, it will make two changes to Australia’s retirement savings system to ensure it is fair and sustainable. Labor will:

• ensure that earnings of more than $75,000 during the retirement phase are taxed at a concessional rate of 15% instead of being tax free
• lower the threshold for the 15% high income superannuation charge (ie Div 293 tax) from $300,000 to $250,000 to better align tax concessions, and
• remove the 10% offset for defined benefit income above $75,000.

Source: Joint media release of the Leader of the Opposition and the Shadow Treasurer, 22 April 2015.

This issue of Client Alert takes into account all developments up to and including 15 March 2015.

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