Super reforms being considered by the federal government are built on a scaled model where tax on super contributions will be based on level of income
High-income earners would pay more tax on super contributions and lower income earners would get a reprieve under a scaled model the federal government is considering for super reforms.
Treasury officials are briefing industry players on a plan to charge super contributions at 20% below an individual’s marginal tax rate, The Australian Financial Review reports.
The model for super reforms would replace the current flat rate of 15% tax on contributions for anyone earning less than $300,000, and would mean anyone on $150,000 or more can expect an increase in their super-contribution tax-rate.
Assistant Federal Treasurer, Kelly O’Dwyer, says while there are lots of options being discussed in the media, they weren’t the government’s preferred option.
‘The government’s considering what we need to do overall with our tax system,’ she told Sky News.
Responding to a report in The Australian that a lifetime cap on super was being examined by Treasury, Ms O’Dwyer said there were already caps on what people could contribute.
‘This idea that people can amass multi-millions of dollars in their superannuation funds is just simply not correct,’ she said.
AAP
