Commentary
The announcement by the federal government that it intends to change the tax structure on superannuation (pension funds) should be of concern to all Australians. Indeed, it should be concerning to all Australians as it is arguably retrospective.
We are once again seeing a federal treasurer targeting a soft target (superannuation) in an attempt to address current budget problems.
History shows that governments of all persuasions have trouble keeping their hands off the retirement nest eggs of Australians.
In summary, the announced changes are as follows: If you have a superannuation fund balance of more than $3 million (US$2 million), then any earnings on your superannuation balance above this amount will be taxed at the new rate of 30 percent, rather than the current rate of 15 percent; and
This change will be effective from July 1, 2025, subject to the required legislation passing the federal parliament. The Labor estimates this will affect about 80,000 Australians. However, this number will inevitably increase as existing funds grow and contributions are made….