The Labor party is proposing a change to the contentious super tax breaks largely enjoyed by wealthier Australians. In a policy claimed to save $14 billion over 10 years, tax concessions on super would be reduced to a tax-free threshold on earnings of $75,000 in a single year. Above this amount, a 15 per cent tax rate would be applied.
In addition, the current high-income threshold of $300,000 would be reduced to $250,000 at which point a 30 per cent tax rate would apply to contributions to super, rather than the current 15 per cent. Mr Shorten claims that these measures are “all about putting fairness back into the system”.
Such measures are in line with the most favoured Budget 2015 policy change in the YourLifeChoices survey reported on Monday.
With the Liberal Party ruling out any changes to superannuation before the next election, the debate is hotting up.
Read more at SMH.com.au.
What do you think? If you earn over $75,000 per annum in your super should you pay tax? If your income is $250,000 per annum, should your super contributions be taxed at a rate of 30 per cnet rather than the current 15 per cent?