The Labor government has proposed changes to the tax rates on superannuation balances above $3 million. The changes, which were announced today by Treasurer, would see those with high superannuation balances pay a higher tax rate on their earnings.
Under the proposed changes, those with super balances above $3 million would be subject to a 30% tax rate on their earnings, up from the current tax rate of 15%. The changes are aimed at ensuring that high-income earners pay their fair share of taxes and that the tax system remains progressive.
The Treasurer said that the changes would affect only...
The Labor government has announced a change to tax concessions within super. This takes the form of a 30% tax on earnings made in super for Members with a Total Super Balance above $3 Million – up from 15%.
This introduces an additional tier in earnings tax similar to the one introduced previously for contributions tax, whereby high income earners (>$250,000) would be taxed at a rate of 30%.
Recently ASIC released a set of updated guidelines on the provision of SMSF advice from financial advisers.
Previously, ASIC guidelines included a reference to a $500,000 minimum threshold before setting up an SMSF. The updated guidelines have since removed this recommendation. This updated guidance was welcomed by the SMSF industry and groups such as the SMSF association and will allow AFSL licensees greater flexibility when providing clients personal advice about SMSF’s.
For further information on the changes to guidance from ASIC please refer to the link here.
ASIC has further stressed...
Following the submission of the Quality of Advice Report, the government will find it hard to find a balance between the competing interests of groups that want a more lenient regulatory structure and those who expect the opposite position.
Unless a review for the regulatory settings are completed, issue will continue to persist in 2023. To read more on this topic, please click here.
Superannuation Warehouse is a specialist SMSF accounting firm. We are not financial advisers and do not provide any financial advice, but we can provide factual information regarding SMSFs. More on the topic of...
Indexation for the general transfer balance cap and the contribution cap is based on the CPI figure for the December quarter.
The Concessional Contribution cap for the 2022 financial year and onwards is $27,500. The Non-concessional Contribution cap for the 2022 financial year is $110,000.
For more information about contribution caps, please see our page.
The article below provides more information about the influences of indexation on caps and policy changes:
CA ANZ outlines top challenges for SMSF professionals in 2023