POWERED BY MOMENTUM MEDIA
Super tax changes to affect higher income earners most
Higher income earners are likely to be most affected by proposed superannuation tax incentive changes in the Budget, according to Centuria Life.
The mooted super tax changes in the upcoming Budget could lead to reduced retirement savings.
This uncertainty means advisers and those planning for retirement are looking for tax effective structures to supplement super, Centuria's general manager, Neil Rogan said.
"It makes sense for people to be looking out for ways to supplement their super as tax effectively as they can. And we're seeing a real resurgence in interest in investment bonds as a result," he said.
"Those on higher incomes may want to consider their options and savings strategies to supplement their super before any changes come into effect."
Centuria said the likely areas in super to be tackled in the budget would be:
- Taxing the contributions of higher earners at a higher rate;
- Making the discount for capital gains tax for super funds less generous; and
- Reducing the annual limit on superannuation contributions and/or changing the transition to retirement rules as they relate to concessional tax rates.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
