Aussie Super Funds Earning Over 100K Pa To Be Taxed 15% On Earnings

[MrWorldwide]

http://www.news.com.au/money/superannuation/labor-reveals-tax-on-superannuation-earnings-over-100k/story-e6frfmdi-1226612971840

Our Super is taxed when it goes in, taxed when it comes out and now, for some anyway, taxed if it dares to earn interest. Personally, I dont think anyone who is earning that kind of money is doing it too tough, but ironically I would imagine that some of the heftiest Super accounts belong to public servants. Park your carcass in the same job for 25+ years, particularly in Canberra (highest average weekly earnings anywhere in Oz), and maintain a conservative risk strategy : not hard to imagine well over a million dollars in an account like that. Whether the returns in your fund would come out at over 10% is a tougher question, but the last 12 months have been much better than the previous 56 ....

We all knew Mr Swan was planning something, and personally I'm happy that this is that something. Compared to suggestions like 'raise the preservation age to 70 !', this is relatively mild IMO.

Edited April 5, 2013 by MrWorldwide

[aarn]

Hit 'em hard, I say, with superA balance $75K after working/paying tax 22 years... AA

[chainarong]

This simplistic logic is hard to stomach , some might have planted their butt in Canberra for eons, what about the guy that worked underground as a machine miner for a 40 years at either Broken hill or Kalgoorlie, saved he's money for a nice nest egg, pays high taxes all he's life ,lived all he's working life in the out back ,then this Swan prick taxes him in old age. Easy pickings. Disclosure: I Am one of these miners.

[simple1]

As said this proposed new tax applies to superannuation earnings of over A$100 per year. Even so, it's not fair as government had previously strongly encouraged Australians to investment more in Superannuation to minimise costs for supporting retirees. Also people aged 50 and over will also get a boost to the tax free additional contributions they can make from $25,000 to $35,000. This is after government had previously cut annual tax free contributions from A$50k to A$25k

These days it's commonly estimated that to retire in Australia with an income stream to support a reasonable life style requires around A$1m to A$1.5m. That of course does not take into account the ups and downs of the market. Twice in 20+ years I lost around 15% of my super savings, that hit can take quite a while to recoup.

Edited April 6, 2013 by simple1

[chainarong]

As said this proposed new tax applies to superannuation earnings of over A$100 per year. Even so, it's not fair as government had previously strongly encouraged Australians to investment more in Superannuation to minimise costs for supporting retirees. Also people aged 50 and over will also get a boost to the tax free additional contributions they can make from $25,000 to $35,000. This is after government had previously cut annual tax free contributions from A$50k to A$25k

These days it's commonly estimated that to retire in Australia with an income stream to support a reasonable life style requires around A$1m to A$1.5m. That of course does not take into account the ups and downs of the market. Twice in 20+ years I lost around 15% of my super savings, that hit can take quite a while to recoup.

I don't think the government has any right to interfere with how much you put into super , they should be glad some one is, someone coming through in the next decade will require 3 mill to live a good retirement , even now i am up around 2 mill.

[simple1]

As said this proposed new tax applies to superannuation earnings of over A$100 per year. Even so, it's not fair as government had previously strongly encouraged Australians to investment more in Superannuation to minimise costs for supporting retirees. Also people aged 50 and over will also get a boost to the tax free additional contributions they can make from $25,000 to $35,000. This is after government had previously cut annual tax free contributions from A$50k to A$25k

These days it's commonly estimated that to retire in Australia with an income stream to support a reasonable life style requires around A$1m to A$1.5m. That of course does not take into account the ups and downs of the market. Twice in 20+ years I lost around 15% of my super savings, that hit can take quite a while to recoup.

I don't think the government has any right to interfere with how much you put into super , they should be glad some one is, someone coming through in the next decade will require 3 mill to live a good retirement , even now i am up around 2 mill.

Cannot stop you from putting money into super, they just closed the loophole on the lower tax rate advantage for those who are on a higher income tax rate

[midas]

As said this proposed new tax applies to superannuation earnings of over A$100 per year. Even so, it's not fair as government had previously strongly encouraged Australians to investment more in Superannuation to minimise costs for supporting retirees. Also people aged 50 and over will also get a boost to the tax free additional contributions they can make from $25,000 to $35,000. This is after government had previously cut annual tax free contributions from A$50k to A$25k

These days it's commonly estimated that to retire in Australia with an income stream to support a reasonable life style requires around A$1m to A$1.5m. That of course does not take into account the ups and downs of the market. Twice in 20+ years I lost around 15% of my super savings, that hit can take quite a while to recoup.

“ Even so, it's not fair as government had previously strongly encouraged Australians to investment more

in Superannuation to minimise costs for supporting retirees. “

Your statement reminded me of an ABC Four Corners on this subject 2 weeks ago. This story will chill anyone looking to invest their retirement savings.The bloody government hasnt done it's job of protecting these old guys and doing the right thing.

" With Australia's population ageing, governments have made it very clear: you had better save and plan for your own retirement. The question is, how can you be sure the money you have to invest is in safe hands?Four Corners reporter Stephen Long heads into the sometimes shadowy world of managed investment companies, following the money trail and trying to find out how billions of dollars have been lost "

http://www.abc.net.au/4corners/stories/2013/03/04/3700673.htm

Edited April 6, 2013 by midas

[chainarong]

As said this proposed new tax applies to superannuation earnings of over A$100 per year. Even so, it's not fair as government had previously strongly encouraged Australians to investment more in Superannuation to minimise costs for supporting retirees. Also people aged 50 and over will also get a boost to the tax free additional contributions they can make from $25,000 to $35,000. This is after government had previously cut annual tax free contributions from A$50k to A$25k

These days it's commonly estimated that to retire in Australia with an income stream to support a reasonable life style requires around A$1m to A$1.5m. That of course does not take into account the ups and downs of the market. Twice in 20+ years I lost around 15% of my super savings, that hit can take quite a while to recoup.

>“ Even so, it's not fair as government had previously strongly encouraged Australians to investment more

in Superannuation to minimise costs for supporting retirees. “

Your statement reminded me of an ABC Four Corners on this subject 2 weeks ago. This story will chill anyone looking to invest their retirement savings.The bloody government hasnt done it's job of protecting these old guys and doing the right thing.

" With Australia's population ageing, governments have made it very clear: you had better save and plan for your own retirement. The question is, how can you be sure the money you have to invest is in safe hands?Four Corners reporter Stephen Long heads into the sometimes shadowy world of managed investment companies, following the money trail and trying to find out how billions of dollars have been lost "

http://www.abc.net.au/4corners/stories/2013/03/04/3700673.htm

Scary Midas

[oxymoron]

This Post Heading is as erroneous as all the Australian News reported it. The "blind leading the blind".

The 15% on $100,000+ is on income streams being derived from Allocated or Define Benefit Scheme pensions etc.

Still better than it was, where previously (20 years ago) this income was taxed as income the same as PAYE, the reason I took a lump sum and went to play by myself outside of Oz Gov whims.

Still if Mr Krudd had not wasted $50,000,000 on so called stimulation, the current and future Gov's would not have to be looking for new ways to fleece us

PS if you are working or have your funds in the "Accumulation" phase you are paying 15% now!

[midas]

This simplistic logic is hard to stomach , some might have planted their butt in Canberra for eons, what about the guy that worked underground as a machine miner for a 40 years at either Broken hill or Kalgoorlie, saved he's money for a nice nest egg, pays high taxes all he's life ,lived all he's working life in the out back ,then this Swan prick taxes him in old age. Easy pickings. Disclosure: I Am one of these miners.

Actually chainarong I thought about you after I posted the link. It sounds like you have worked as hard as that cane cutter in Queensland. Poor old guy. It is a bloody disgrace that these ‘spivs ‘like that guy in Melbourne virtually get the all clear from ASIC to rip off 33 million dollars. I mean what is the point of having a regulatory agency if the laws are so stacked against the innocent parties?

Anyway please take care of where you put your money . Make sure you fully understand the exact nature of the Company, you are dealing with.

Edited April 7, 2013 by midas

[samran]

For me this is just the closing of a massive loophole. Those affected will whinge, but at the end of the day still contribute to super over and above the compulsory 9% to 12%. Why? Cause super will still always be a preferential investment vehicle, and such, a good deal.

[Time Traveller]

For me this is just the closing of a massive loophole. Those affected will whinge, but at the end of the day still contribute to super over and above the compulsory 9% to 12%. Why? Cause super will still always be a preferential investment vehicle, and such, a good deal.

If it's such a good deal, why is it compulsory? Or did you mean that it's such a good deal for the fund managers who get their management fees from the billions of dollars that otherwise would not have went to them? Yes it's a good deal if you're part of the government protected industries