High Earners to Pay 30% Tax for Super
Bad news for high earners but good news for the government.
High-earner individuals would have to pay 30 percent tax for their concessional super contributions. The move translates to a $1-billion savings for the government and would significantly aid in bringing the budget to surplus.
The changes in tax rate will take effect on May 8. Those who earn a taxable income of more than $300,000 will be affected. The number translates to about 1.2 percent of total workers who give contributions to their supper, roughly close to 130,000.
Minister for Superannuation Bill Shorten said that it is quite obvious that high-earning individuals benefit more for their super, most of them contributing to a smsf. To make the system fairer for the rest of Australian workers, the government wants to ensure that tax breaks for are imposed across income ranges.
Opposition leader Tony Abbott has openly criticized the government for using family benefits to incite “class warfare.” Shorten, however, retaliates by saying the Abbott’s batting for the top 1 percent of has alienated and betrayed the rest of the Australia’s working families.
Some quarters have complained that the government use super when the budget is low. Industry observers also noted that it is the government’s way of distracting the public from scandals involving Speaker Peter Slipper.
The beleaguered Slipper has been accused of sexual misconduct towards a former staff named James Ashby. Slipper resigned from his post after calls intensified for him to vacate the post.
Slipper, however, continues to deny the allegations. He also hope he can join the May deliberation on the budget.