POWERED BY MOMENTUM MEDIA
Will high income earners exit super for property?
The Federal Treasurer, Scott Morrison, has rejected suggestions that targeting the superannuation tax concessions enjoyed by upper income earners will necessarily prompt them to shift their investment focus to the property market.
Seeking to explain the Government's Budget changes in a series of interviews, Morrison acknowledged, however, that upper income earners would undoubtedly move to reduce their exposure to the higher tax regime.
The Treasurer said that those impacted by the superannuation tax changes could switch their money back into accumulation or they could invest it wherever they chose.
However, Morrison suggested that high income earners affected by the Budget changes might choose to invest their money in some of the tax-advantaged business opportunities announced in the Budget rather than necessarily in property.
Discussing the status of the superannuation changes, Morrison said, "Now it's your money so you can go and put it where you want. You can transfer it back into what's called the accumulation account in superannuation, where you pay 15 per cent tax on the earnings or you can go and spend it anywhere else you like — I mean it's your money".
"So no one's taking the money off them, it's theirs, they've earned it, good for them, and I'm thrilled that they've done so well for themselves. But that doesn't mean once you've got over $1.6 million that the taxpayer's going to give you a tax free saving."
Recommended for you
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
Rest has joined forces with alternative asset manager Blue Owl Capital, co-investing in a real estate trust, with the aim of capitalising on systemic changes in debt financing.
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
