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




REVEALED: The Lismore group behind highway sign stunt

Greens mayoral candidate Vanessa Grindon-Ekins at Lismore and Villages sign at Hinterland Way

"This is only the beginning", the group has warned

CCTV footage opens new leads in Sabrina Bremer murder case

Leaked CCTV footage shows a man getting out of the car Logan woman Sabrina Bremer was last seen alive in.

Leaked footage shows a man abandoning a white sedan

LATEST: Minor flood warning issued as rain sets in

RAIN RADAR: The latest rain radar from the Bureau of Meteorology shows further rain is on its way to Northern NSW throughout the coming hours.

UPDATE: Areas close to the border copping the most rain.

Latest deals and offers

Blac Chyna sued after car injured 2 women

Blac Chyna is being sued after her friend crashed into another car

Bachelor Richie gives bacon-loving Noni the boot

Noni Janur features on this season of The Bachelor.

TOOWOOMBA swimwear designer still single but focusing on her career.

Chris Hemsworth surprises kids at hospital as Thor

Chris Hemsworth and Tom Hiddleston surprised children at hospital

Single-day tickets on sale for each date of Falls Festival

LAUNCH: The Avalanches' Robbie Chater and Tony Diblasi were the official DJs at the Byron Bay launch of Falls Festival 2016/17.

Find out when is each artist playing this year in Byron Bay

MOVIE REVIEW: War Dogs tells a fascinating true story

Miles Teller and Jonah Hill in a scene from the movie War Dogs.

DARKLY funny film examines the business side of the war on terror.

Marvel-ous: Thor actors visit sick kids at Lady Cilento

Stars of Thor: Ragnarok dropped in on patients at the hospital

ISLAND FOR SALE: Cheap Fraser Coast island drops price again

Suna Island in the Great Sandy Strait will be auctioned by Ray White Hervey Bay on Saturday morning.

This is the cheapest island you will find for sale in Australia

How a family home can fit on a 250sq m block

This is what you can build on 250m2.

Here's the floor plan of a home built on 250sq m

Investors eye Gladstone's $4m island with resort approval

UP FOR SALE: Turtle Island is on the market.

CHINESE and Sydney investors flag interest in Gladstone island.

Take a sneak peek at this $19m Whitsunday mansion

Mandalay House features a private helipad.

Mandalay is currently on the market with an asking price of $19m

Guess which Sunshine Coast suburb cracked the million dollar list?

This four-bedroom home at 26 McAnally Dr, Sunshine Beach was for sale for $7 million.

List of Australia's five most-expensive suburbs

Does it get any better than this? Check out this $2M home

LUXURY LIVING: The Coral Cove home built by Steve Coates Constructions that took out the best home over $2 million and the Wide Bay Burnett House of the Year at the Master Builders Wide Bay Burnett Housing and Construction Awards.

Wide Bay's best home is right on our doorstep