Proposed changes to superannuation NOT to proceed

The federal government has announced that it will NOT proceed with a raft of Labor’s taxation changes, including taxes on individual superannuation pension earnings above $100,000. That is, super funds will retain their 100% tax free status in pension mode.

The previous Labor government had proposed (announced on 5 April 2013), effective 1 July 2014, that all earnings on assets supporting income streams would continue to be tax free up to $100,000 a year for each individual. However, earnings above $100,000 would then be taxed at the concessional rate of 15 per cent. That is the same tax that applied to earnings in the accumulation phase of superannuation.

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