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
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
Tax saving
Australia signs on for global trade floor
Australia is set to gain up to $3 billion in additional tax revenue after agreeing with world leaders to sign on to new rules as to where profits for multinationals should be taxed as well as a new mi...Read more
Tax saving
Aussies warned of overconfidence ahead of EOFY
Two-thirds of Australians are confident about grappling with the tax implications of the pandemic. Maybe too confident. ...Read more
Tax saving
Why investors could unknowingly be heading towards a CGT minefield
The calculation of a capital gain (or loss) should be simple. Unfortunately, it’s becoming more and more complicated, not because the information required to calculate the gain (or loss) has changed...Read more
Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more
Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more
Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
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
Tax saving
Australia signs on for global trade floor
Australia is set to gain up to $3 billion in additional tax revenue after agreeing with world leaders to sign on to new rules as to where profits for multinationals should be taxed as well as a new mi...Read more
Tax saving
Aussies warned of overconfidence ahead of EOFY
Two-thirds of Australians are confident about grappling with the tax implications of the pandemic. Maybe too confident. ...Read more
Tax saving
Why investors could unknowingly be heading towards a CGT minefield
The calculation of a capital gain (or loss) should be simple. Unfortunately, it’s becoming more and more complicated, not because the information required to calculate the gain (or loss) has changed...Read more
Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more
Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more
Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
