Super tax hit on high earners unwelcome but politically safe ...
Deloitte Federal Budget media releaseDOWNLOAD
Tuesday 8 May 2012: The announcement that the Government will revisit the contributions tax surcharge and in effect double the superannuation tax rate to 30 per cent on high earners’ deductible contributions from 1 July 2012, will be unwelcome by the top 1 per cent of earners that it is aimed at.
“It is a politically safe move,” said John Randall, superannuation tax partner at Deloitte. “Ideologically it is equitable, however my concern is that ‘tinkering’ in this way will create a nervousness around a superannuation system that is predicated on its simplicity and stability.
“The value of Australia’s superannuation system and the 15 per cent tax concession on superannuation to date is that it is straightforward and predictable. So in many ways it is a shame to undermine that confidence to secure an estimated $1billion every three years for the Government in a multi-trillion dollar industry.”
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