Save
Predictions for the future of super tax
Tax is a critical part of the superannuation system and the coming years will see more taxation become increasingly targeted at niche areas of the sector, according to an expert.
Predictions for the future of super tax
Tax is a critical part of the superannuation system and the coming years will see more taxation become increasingly targeted at niche areas of the sector, according to an expert.
How superannuation funds are taxed has been constantly debated and changed since the system’s inception, but in recent years a trend towards more targeted taxation has appeared, Antoinette Elias told Nest Egg.
Ms Elias, a senior staff member at consulting firm EY (formerly Ernst & Young), said the most recent changes to the super system were a good indicator of how tax will be applied moving forward.
“The changes that came in on 1 July 2017 are really about targeting the tax concessions and the superannuation benefits to where they’re needed most; to get people off the age pension,” she said.
“They’re not really targeted at people that were always going to be self-funded in retirement because they’re high-net-worth individuals, for them to use the superannuation concessions as broadly and as generously as they have been able to.”
Ms Elias predicts that further tax concessions are unlikely to be introduced into the system except in cases where they may help groups of people with “serious deficiencies” in their retirement savings.
“If there was an area where the government was to introduce more tax concessions, I think it would be trying to target the people that don’t have enough in super,” she said.
“I think that is one area where we could see greater superannuation concessions and encouragement, but at the other end with high-net-worth individuals I don’t think we’ll see, I think if there’s any further tax changes it will actually be to continue to limit the entitlements they can access through tax concessions.”
So how can ordinary Aussies stay abreast of increasingly targeted and niche tax laws in a system which Ms Elias noted is already infamous for the complexity of its rules?
“If you understand the base rules, you understand the change,” Ms Elias said.
“My advice to ordinary superannuation members regarding the tax rules and how they will impact members, and what that means for their future retirement benefits, is whilst there’s no easy way to get across all that, if you are engaged and interested there’s actually a lot of material available, and you don’t have to pay for a lot of it.”
Ms Elias said people can get a wealth of information from their super fund and financial institutions, much of it for free, though noted those looking to address specific personal problems will likely need to speak with a qualified professional.
Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. ...Read more
Tax saving
10 ways to reduce your tax bill
With the tax return deadline only one month away, these tips could help minimise your tax bill. ...Read more
Tax saving
Sustainable tax conditions only way forward: OECD
The Australian economy had been on a 28-year winning streak of uninterrupted growth before the pandemic. However, despite a return to lockdowns, the OECD has predicted that winning ways can return sh...Read more
Tax saving
ATO issues warning over new gift card scam
The Australian Taxation Office (ATO) is warning victims of a new phone scam, where scammers are pretending to be the tax man and demanding payments for unpaid tax liabilities. ...Read more
Tax saving
EV uptake set to stall following tax changes
Special EV taxes introduced by state governments are creating a disincentive for Aussies to choose cleaner vehicles and slowing Australia’s overall transition to net zero, new data has revealed. ...Read more
Tax saving
Rooftop solar avoids ‘sun tax’ but still faces caps
Power companies will soon be able to charge Australians with rooftop solar panels a tax for exporting electricity to the grid, albeit the regulators have walked back from the most controversial parts ...Read more
Tax saving
South Australians now eligible for COVID-19 Disaster Payment
South Australians under lockdown are set to be supported by the COVID-19 Disaster Payment, the state government has confirmed. ...Read more
Tax saving
Broken tax system costs economy $50bn
Australia’s tax laws are costing the nation about $50 billion in compliance costs, while inefficient taxes are slowing down economic growth, an industry expert has warned. ...Read more
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. ...Read more
Tax saving
10 ways to reduce your tax bill
With the tax return deadline only one month away, these tips could help minimise your tax bill. ...Read more
Tax saving
Sustainable tax conditions only way forward: OECD
The Australian economy had been on a 28-year winning streak of uninterrupted growth before the pandemic. However, despite a return to lockdowns, the OECD has predicted that winning ways can return sh...Read more
Tax saving
ATO issues warning over new gift card scam
The Australian Taxation Office (ATO) is warning victims of a new phone scam, where scammers are pretending to be the tax man and demanding payments for unpaid tax liabilities. ...Read more
Tax saving
EV uptake set to stall following tax changes
Special EV taxes introduced by state governments are creating a disincentive for Aussies to choose cleaner vehicles and slowing Australia’s overall transition to net zero, new data has revealed. ...Read more
Tax saving
Rooftop solar avoids ‘sun tax’ but still faces caps
Power companies will soon be able to charge Australians with rooftop solar panels a tax for exporting electricity to the grid, albeit the regulators have walked back from the most controversial parts ...Read more
Tax saving
South Australians now eligible for COVID-19 Disaster Payment
South Australians under lockdown are set to be supported by the COVID-19 Disaster Payment, the state government has confirmed. ...Read more
Tax saving
Broken tax system costs economy $50bn
Australia’s tax laws are costing the nation about $50 billion in compliance costs, while inefficient taxes are slowing down economic growth, an industry expert has warned. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
