A new tax that would be applied to the top 11 per cent of SMSFs, and which could potentially raise $1.8 billion annually, is "feasible", according to BasisPoint Consulting.
Imposing an additional 10 per cent income tax, on top of the existing 15 per cent for SMSFs, could equate to $1.78 billion in new tax revenue, according to BasisPoint.
David Chin, managing director, said the potential tax would be a "feasible development", given the government has already hinted at tax changes for SMSFs.
"Number one, the government is looking for new tax revenues. Number two, these tax revenues, on the assumption of a 10 per cent extra income tax, are almost as big as the mining tax, so it is quite substantial," he said.
"Number three, it's impacting on 56,000 of SMSFs in the higher bracket, so it's not impacting on a lot of voters. On that basis, I think it would be tempting for the government to explore this option."
Mr Chin said he released the figures to spur public discussion ahead of the May Budget, and to enable the SMSF industry to lobby against the possible move.
"It's a tax on savings and so you wouldn't want it to be a disincentive for future generations to save via their SMSFs," he said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 22 Sep 2017ASIC permanently bans SMSF property spruikerBy Miranda Brownlee
- 22 Sep 2017Male SMSF investors ‘bigger risk takers’, says reportBy Staff Reporter
- 22 Sep 2017Lawyer flags subdivision trap with downsizer contributionsBy Miranda Brownlee
- 22 Sep 2017ATO urged to address ‘unknowns’ with LRBA reportingBy Miranda Brownlee
- 21 Sep 2017Lost and unclaimed super climbs to $18 billionBy Lara Bullock
- 21 Sep 2017ATO to release further guidance on reservesBy Miranda Brownlee
- view all
- Male SMSF investors ‘bigger risk takers’, says report
Male SMSF members tend to hold a greater share of assets in higher risk investments including domestic shares and property in comparison to ...read more
- Lawyer flags subdivision trap with downsizer contributions
SMSF trustees planning to make downsizer contributions have been warned that if a property has been subject to a partial sale in the 10 yea...read more
- ATO urged to address ‘unknowns’ with LRBA reporting
The ATO has been asked to provide further clarity around the events based reporting requirements for LRBA repayments, with the new requireme...read more
- view all