Business

Subsidies slashed for super-rich

The July 1 change, hitting only those who earn more than $300,000, will reduce the tax concession wealthy taxpayers receive on their super contributions from 30 per cent to 15 per cent.
The July 1 change, hitting only those who earn more than $300,000, will reduce the tax concession wealthy taxpayers receive on their super contributions from 30 per cent to 15 per cent. © iStockphoto.com/felixR

TOP income earners will have their tax concession for superannuation slashed in half, saving $1 billion to help the bottom line in next month's tough budget.

The July 1 change, hitting only those who earn more than $300,000, will reduce the tax concession wealthy taxpayers receive on their super contributions from 30 per cent to 15 per cent.

Under the present system, the top 1 per cent of income earners would receive an average concession on their super contribution of $7350 in 2012-13. Their concession will fall to $3675 under the change.

Those who earn more than $300,000 comprise 1.2 per cent of those contributing to superannuation. For all contributors on less than $300,000, current arrangements will continue, so someone on $295,000 would still be receiving the 30 per cent concession.

Superannuation Minister Bill Shorten said that while the government believed superannuation should be concessionally taxed it was clear a small number of high income earners ''are getting a better deal out of super than millions of Australians on average incomes''.

Read more at Brisbanetimes.com.au

Topics:  federal budget 2012, superannuation, super-rich


Local Real Estate

finda logo
Featured Real Estate
Brisbane 4000  9x3m $24,900, 10x3m $27,500. Bathroom, bedroom, lounge, kitchen, colorbond finish, gyprock, cornices ...
Coraki 2471 $535000.00
Land CORAKI FARM Approx. 235 acres of gentle undulating country with enormous 4 ...
10 Mt Samson Rd... $27000.00
Glendale Cabin - Aluminium clad holiday cabin freshly painted internally & externally, ...

Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.