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
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
