SuperConcepts general manager, technical services and education Peter Burgess says while Treasury will not be making any changes to the current process for claiming deductions, they are looking to make changes to the rules next year.
As a result of the latest round of proposed super reforms, Mr Burgess said there will be a lot more super members claiming tax deductions for super contributions.
Under the current rules, super members have to make an election to the fund and say they have an intention to claim it as a tax deduction. They have to wait for the fund to acknowledge that request before they claim it, he said.
“We need a simpler set of rules because people are getting wrong under the current rules,” Mr Burgess said.
“Now the good news is that [Treasury] are looking at this and it is very likely that they will simplify the rules around people claiming tax deductions. We won’t see these changes made in this package of reforms, but it could be next year that we see changes made.”
Mr Burgess said the changes could come in before the broader superannuation reform measures that will in from 1 July 2017.
With the shemozzle which is the $1.6m cap rule, I have no faith that the politicians or Treasury boffns have any idea what simplicity is.
The $1.6 m rule should simply Tax all income over $80,000. End of story. Simple!
The profession is aghast at the extraordinary complexity being created. Ot is seriously bizarre.