Those at the top end of town will see their superannuation balances grow at a slower rate with the concession tax rate for high earners being cut in half. Anyone earning over $300,000 or more will see the concession tax rate on superannuation contributions cut from 30 per cent to 15 per cent. This affects only 1.2 per cent of the population but will net the Government $946.5 million in savings and is a step towards a fairer tax system for all.
At the other end of the scale, low income earners who take home less than $37,000 per annum will enjoy a boost of up to $500 to their super balances from 1 July 2012. This will be due to the implementation of new super concessions which effectively mean low income earners pay no tax on guaranteed superannuation contributions.
With the scrapping of the upper age limit, which is currently 70, older workers will now be able to receive guaranteed superannuation contributions for as long as they decide to remain employed
In addition to these reforms, individuals aged 50 and over, who have superannuation balances of less than $500,000 will be able to make concessional contributions of up to $50,000 per annum, from July 2014.