IGR hints at tax changes to super
The content of the 2015 Intergenerational Report (IGR) suggests tax reform in relation to super is on the government’s agenda, according to Taxpayers Australia.
Taxpayers Australia manager of superannuation products and services Reece Agland said the IGR is a useful guide to the future development of tax policy and hints that “superannuation tax issues are on the table”.
Mr Agland referred to page IXI of the IGR which stated “the government will consider several aspects of the superannuation system as part of the review of the tax system”.
He told SMSF Adviser while it’s still unclear exactly what these aspects will be, one change the government may consider is capping non-concessional contributions in order to address some of the perceived concerns about members putting too much into super.
“They might also look at taxing income in super but I don’t think that’s something they’ll take to the next election as they’ll risk losing votes,” said Mr Agland.
“The white paper will also discuss a whole range of different proposals so I wouldn’t be surprised as that comes back as a discussion.”
Mr Agland said it will be a matter of what is easiest for the government to implement in the current political environment.
“I don’t think there’ll be anything in this year’s Budget but going to the next election I think both major parties will propose something in relation to taxing super,” he said.
“One thing is clear – the Treasury have got into the ear of the Treasurer that he needs to do something about what it sees as the ‘generosity’ of the superannuation system.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.