Issue: 466
Sent: 01-02-2012 12:32:06
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The Government's Super Talkfest
Tony Negline
Welcome to another year.
The Government has announced yet another talk fest involving superannuation and its various announced policy changes.
It includes the higher concessional contribution threshold for those over 50 if they have less than $500,000 in super assets. I wouldn't be surprised if this change is proving difficult to put in place without an RBL type system which I'm sure the Government isn't keen to introduce.
The talk fest involves the usual people and groups it asks for feedback so what is its purpose? Cynically it'll enable someone to point to the event and claim that something is being done and industry is being asked for feed-back.
Perhaps the purpose is to address the ACTU's claims - made during the quiet Christmas holidays - that it wanted the super tax concessions to be re-weighted away from higher income earners and in favour of lower income earners.
The vast majority of lower income earners pay no - or at worst very little - personal income tax.
I'm sure I don't have any influence over Government policy but I don't recall anyone else except me pointing out that compulsory super isn't tax effective for about 50% of taxpayers. My point is not the same as the ACTU. My argument is that the tax concessions available to higher income earners need to stay because what other concessions are they entitled to? However lower income earners shouldn't be forced to save in a vehicle that taxes them more heavily than if they invested the same money in their own names.
The Government gets away with this embarrassment because the tax system is so complicated.
Already some people going to the talkfest believe that the generous Age Pension Asset Test taper rules introduced by the Howard Government should be revisited. What the savings are meant to be used for is not immediately apparent.
Just before Christmas I published a revised version of my SMSF book. You can see all the changes that have been made between Version 5.1 and 6.0 (the latest edition).
You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
For details of the changes made from version 5 to version 6 visit: http://www.atcbiz.com.au/r.php?r=d5xcpch
As you'll see from the list there have been many changes.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
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