Labor changes to personal superannuation contributions.
I'm wondering if Labor's proposed changes will affect anyone else?
I’m 57 & currently work full time. When I started to salary sacrifice into my super I found that my employer paid the 9.5% SG on my salary less the amount I had sacrificed. While this is legal I feel that it is morally wrong. My way around this for the past 2 years is to make my own weekly payments into my super fund. If Labour wins the election they plan on disallowing personal superannuation contributions. I emailed them & received a very lengthy response from Thomas McCrudden of Chris Bowen’s office. The crux of it being that research indicated that the change affected very few people & those that it did had average earnings of $182,000 per year. This is definitely not me!
Cheers Susan
Susan, you need to do both "what ifs" to choose the most beneficial, and there will be a different outcome depending on your marginal rate of tax on income and whether the marginal rate varies according to your level of sacrifice. But I do know that the only marginal tax rate below 9.5% is zero.