The vast majority of taxpayers will be exempt from the upcoming budget superannuation changes, with Treasurer Wayne Swan to target those who earn $300,000 plus.
With the government desperate to find savings to fund its Gonski education and disability insurance reforms, it is understood the super changes – to be unveiled in the May 14 budget – will hurt fewer than 100,000 people.
These are expected to see the tax paid on superannuation earnings increase, from 15 to 30 per cent for people earning over $300,000 – just 1 per cent of taxpayers, or 91,000 people.
In last year’s Budget, the Government increased the tax to 30 per cent on super contributions paid to people earning $300,000-plus.
It is expected the proposed crackdown will reap around $2 billion in additional revenue over four years – enough to make a decent down payment on the big ticket education and disability reforms.
According to Treasury forecasts, superannuation tax concessions will this financial year hit $31.8 billion – overtaking negative gearing for the first time. But the costs of super concessions will soar to $44.8 billion by 2015/16, raising serious concerns about the sustainability of the current framework.
