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Resource tax could impact super
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Australian superannuation funds, while celebrating the Government’s intention to lift the super guarantee to 12 per cent, needed to also contemplate the impact of the proposed resource super profits tax on their ultimate earnings, according to Deloitte.
The company’s superannuation tax partner, Noelle Kelleher, said the sizeable impost on resource company profits might detrimentally affect the after-tax earnings of superannuation funds.
“Although not a direct tax on superannuation funds, superannuation funds will be affected from an after-tax investment earnings perspective,” she said.
“The Government’s superannuation specific measures announced in response to the Henry Tax Review were aimed at increasing future retirement incomes. However, the Resource Super Profits Tax represents a real cost to investors, and could result in lower retirement income outcomes where funds invest in the resource sector,” Kelleher said.
She said that in Deloitte’s view the tax risked having a significant after-tax effect on superannuation on various fronts — reduced profits for resource companies, tax imputation offsets and lower share prices.
“Superannuation funds are required to diversify their investment risks, but superannuation funds may be reluctant to channel capital into the resource sector if they do not get sufficient after-tax returns given the associated risks and likely economic outcomes,” Kelleher said.
AUTHOR
Mike Taylor
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